Molina Healthcare announced that it has entered into a definitive agreement to acquire ConnectiCare, a wholly owned subsidiary of EmblemHealth. The purchase price for the transaction is $350M, representing 25% of expected 2024 premium revenue of $1.4B. ConnectiCare is a health plan in the state of Connecticut serving approximately 140,000 members across Marketplace, Medicare, and certain commercial products as of June 30. The acquisition is expected to add $1.00 per share to new store embedded earnings. Molina intends to fund the purchase with cash on hand. The transaction is subject to the receipt of applicable federal and state regulatory approvals, and the satisfaction of other customary closing conditions. It is expected to close in the first half of 2025.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on MOH:
- MOH Earnings this Week: How Will it Perform?
- Molina Healthcare awarded new Florida Medicaid contract
- Elevance Health downgraded to Neutral from Buy at BofA
- Molina Healthcare price target lowered to $400 from $440 at Truist
- Indivior to pay $85M to resolve consolidated antitrust litigation proceedings