HealthEquity Adds Further to Expand Presence in HSA Market
The Utah-based managed care company HealthEquity, Inc. (NASDAQ: HQY) announced earlier this month the acquisition of Further, a leading provider of health savings accounts (HSA) and consumer-directed benefit administration services. HealthEquity is paying $500 million for Further, approximately 8.33x the company’s annualized revenue run-rate and 41.7x estimated EBITDA. Further is a leading provider of HSA and consumer-directed benefit administration services, and the nation’s ninth-largest HSA custodian overall. Further is also a technology leader in employer-funded Voluntary Employees’ Beneficiary Association (VEBA) trust administration. VEBAs are triple-tax advantaged health accounts... Read More »
Anthem Buys myNEXUS
The healthcare insurance giant Anthem, Inc. (NYSE: ANTM) is back with a new acquisition. Anthem is buying myNEXUS, Inc. from private equity firm WindRose Health Investors, which has held a majority stake in the company since 2014 when it was known as MTS Health Investors. myNEXUS is a post-acute benefits management company that provides comprehensive management services to health plans and other risk-bearing organizations on an at-risk or fee-for-service basis for total medical expense related to integrated home health, Stars Performance Improvement Program, Social Determinants of Health, inpatient avoidance and clinical programs. myNEXUS delivers integrated clinical support services for... Read More »
Optum Acquires Change Healthcare
It’s not often we see a prolific buyer such as Change Healthcare (NASDAQ: CHNG) as the target company in an acquisition, but it’s a new year with new possibilities. The digital health and analytics giant will be acquired by Optum, a member of UnitedHealth Group (NYSE: UNH) that operates OptumHealth, a population health management company; OptumInsight, a healthcare information analytics company; and OptumRx, a pharmacy benefits management company. The deal is valued at $13.17 billion, consisting of $8 billion in cash ($25.75 per share) and approximately $5.17 billion in assumed debt. The price is a 41% premium to Change Healthcare’s closing price on January 5, 2021. Change Healthcare is a... Read More »
Centene Corporation and Magellan Health Merge
It looks like the healthcare M&A market is off to a strong start for the new year. Centene Corporation (NYSE: CNC), the multi-national managed care giant, has announced the acquisition of Magellan Health, Inc. (NASDAQ: MGLN), a healthcare management company specializing in behavioral health and pharmacy benefits. The deal is valued at $2.2 billion, or $95 per share, a 14.6% premium to Magellan’s closing price of $82.85 on December 31, 2020. Magellan Health has approximately 23.5 million members enrolled under its programs. Once the news broke, Magellan’s shares jumped 11% while Centene’s stock reported a slight uptick. Magellan generated annualized EBITDA of... Read More »