LONG BEACH, Calif.–(BUSINESS WIRE)–Molina Healthcare, Inc. (NYSE: MOH) announced today 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 is $350 million, representing 25% of expected 2024 premium revenue of $1.4 billion.
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. The acquisition represents a strong strategic fit for Molina, adding an established government business, recognized brand, and a statewide provider network. The acquisition is expected to add $1.00 per share to new store embedded earnings.
“The addition of ConnectiCare to Molina brings a well-rounded government sponsored healthcare plan, and a new state, to our portfolio,” said Joe Zubretsky, President and CEO of Molina. “Today’s announcement demonstrates the continuing success of our strategy of acquiring stable revenue streams, deploying capital efficiently, and delivering value through the application of the standard Molina playbook.”
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.
About Molina Healthcare
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed healthcare services under the Medicaid and Medicare programs and through the state insurance marketplaces. For more information about Molina Healthcare, please visit MolinaHealthcare.com.
