Clover Health Goes Public
Clover Health Investments, Corp. is going public in a new reverse merger. Founded in 2013, Clover Health provides affordable Medicare Advantage plans to more than 57,000 members in seven states. The company also offers the Clover Assistant platform, which aggregates relevant health data points, including claims, medical charts and diagnostics, and uses machine learning to synthesize that data with member-specific information. This provides physicians with actionable and personalized insights at the point of care, offering suggestions for medications and dosages as well as the need for tests or referrals, among others, to ultimately improve health outcomes. Clover Health is merging with... Read More »
Molina Healthcare Acquires Affinity Health Plan
It has been an eventful year for Molina Healthcare (NYSE: MOH). With two acquisitions already on the books for 2020, the company has announced a third. Last week, Molina Healthcare purchased New York-based Affinity Health Plan for $380 million in cash, net of expected tax benefits. Affinity is a Medicaid managed care organization serving members in New York City, Westchester, Orange, Nassau, Suffolk and Rockland counties in New York. The organization currently has 284,000 members and premium revenues of $1.3 billion. The acquisition expands Molina’s market in New York and is immediately accretive to adjusted earnings per share. Molina Healthcare last announced a deal in July for... Read More »
MetLife Acquires Versant Health
MetLife, Inc. (NYSE: MET) has entered the healthcare M&A market. Last week, the company announced the acquisition of Versant Health, the parent company of Davis Vision and Superior Vision, two major vision care and insurance brands with a combined 35 million members. Centerbridge Partners and an investor group including FFL Partners are selling Versant Health in this acquisition. Centerbridge started exploring the sale of Versant Health in late 2019 when it brought on Barclays to auction off its portfolio company. Metlife is purchasing Versant Health in an all-cash transaction valued at $1.68 billion. With this acquisition, MetLife becomes the third-largest U.S. vision insurer by... Read More » Benefytt Technologies Gets New PE Investment
Madison Dearborn Partners, the Chicago-based private equity firm, isn’t a major investor in the healthcare market, especially compared with some other firms, but it did announce a new acquisition in July. The private equity firm purchased Benefytt Technologies, Inc. (NASDAQ: BFYT) for $420.7 million. Madison Dearborn paid $31 cash per share (13.57 million shares), a 59% premium over the 30-day volume-weighted average price per share of Benefytt’s common stock through the close of trading on July 10, 2020. Benefytt Technologies develops and operates private e-commerce health insurance marketplaces, purchaser engagement platforms, agency technology systems and insurance policy... Read More »
Molina Healthcare is Expanding Fast With New Acquisitions
Molina Healthcare, Inc. (NYSE: MOH) has been on an M&A marathon for the past year, expanding into multiple new states and increasing its presence in others. On July 17, the company acquired certain assets related to the Medicaid and Dual Eligible Special Needs Plans (DSNP) lines of business from Passport Health Plan in Kentucky. The deal was valued at $20 million in cash, plus contingent consideration that is payable in 2021 based on Molina’s Kentucky Health Plan’s open enrollment results in 2020. The acquisition of the Passport lines of business allows Molina to enhance operational readiness and promote continuity of care for members in advance of Molina’s... Read More »