Key Highlights
- Molina Healthcare (NYSE: MOH) to acquire ConnectiCare for $350 million.
- Expected 2024 premium revenue of ConnectiCare is $1.4 billion.
- The acquisition to add $1.00 per share to Molina’s new store embedded earnings.
- Approximately 140,000 members served by ConnectiCare.
- Transaction expected to close in the first half of 2025.
Source: Business Wire
Notable Quote
- “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. The addition of ConnectiCare to Molina brings a well-rounded government-sponsored healthcare plan, and a new state, to our portfolio.” — Joe Zubretsky, President and CEO at Molina Healthcare
SoHC's Take
Molina Healthcare’s strategic acquisition of ConnectiCare is a significant move that underscores the company’s commitment to expanding its footprint in the healthcare sector. The deal, valued at $350 million, represents a notable 25% of ConnectiCare’s expected 2024 premium revenue. By integrating ConnectiCare’s established government business and recognized brand, Molina is poised to enhance its market position and deliver increased value to shareholders. The anticipated addition of $1.00 per share to new store embedded earnings highlights the financial benefits of this acquisition. With regulatory approvals pending, the transaction is on track for completion in the first half of 2025, marking a pivotal step in Molina’s growth strategy.
