Centene Corporation and Magellan Health, Inc. announced they have entered into a definitive merger agreement under which Centene will acquire Magellan Health for a total value of $2.2 billion.
- Acquisition will broaden and deepen Centene’s whole health capabilities, while establishing a leading behavioral health platform at a critical time
- Combined platform to deliver better health outcomes for complex populations through the integration of physical and mental health care
- Important addition to Centene’s Health Care Enterprises, under which Magellan Health will continue to operate independently
- Focus on creating next generation behavioral health platform, aligned with Centene’s technology strategy with additional growth opportunities in specialty care and pharmacy
- Magellan Health CEO and management to remain in leadership roles, bringing additional talent to Centene and providing continuity
- Value creation for shareholders through cost synergies and new growth opportunities
Magellan Health will also add to Centene’s leadership in government sponsored healthcare, bringing 5.5 million new members on government-sponsored plans. Magellan Health also provides specialty health services for 18 million third-party customer members in addition to Centene’s own members. Furthermore, the transaction adds 2 million PBM members and 16 million medical pharmacy members, enhancing the scale of Centene’s pharmacy platform with leading capabilities in specialty drug management.
Centene and Magellan Health expect to complete the transaction in the second half of 2021.