Molina Healthcare, Inc. announced on July 23 that it has entered into a definitive agreement to acquire ConnectiCare Holding Company, Inc., a wholly owned subsidiary of EmblemHealth, Inc. The purchase price for the transaction, which is expected to close in the first half of 2025, is $350 million.
The acquisition represents a strong strategic fit for Molina, adding an established government business, recognized brand and a statewide provider network.
ConnectiCare is a leading health plan in the state of Connecticut serving approximately 140,000 members across Marketplace, Medicare and certain commercial products as of June 30, 2024.
Molina Healthcare, Inc., a Fortune 500 company, provides managed healthcare services under the Medicaid and Medicare programs and through the state insurance marketplaces. Through its locally operated health plans, Molina Healthcare served approximately 5.7 million members as of March 31, 2024, located across 19 states.
The acquisition is expected to add $1.00 per share to new store embedded earnings, according to the original deal press release. 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.
According to data captured in the LevinPro HC database, this acquisition represents the 12th Managed Care transaction of 2024. This is a slight decrease from last year, when there were 16 Managed Care acquisitions reported between January 1, 2023, and July 23, 2023. There were 31 Managed Care deals announced during 2023, and 45 announced during 2022.
