agreed to acquire a roughly 68% interest in U.S. Medical Management LLC, a provider of in-home health services, for $200 million in cash and stock as the Medicaid insurer continues to expand its stable of services.
Centene also said it is forming a new health-care enterprise holding company that will connect Centene and other health solution providers in conjunction with the deal, which is expected to close in the first quarter. Further details weren’t provided.
The acquisition of U.S. Medical Management is expected to be funded with a combination of about one-third cash and two-thirds Centene stock.
The Michigan-based company serves individuals with complex health needs and conducts more than 400,000 physician house calls annually.
The deal is expected to increase Centene’s per-share earnings by two cents to five cents next year and add annual revenue of $220 million to $240 million. The company expects the transaction to increase per-share earnings in 2015 by 20 cents to 25 cents.
U.S. Medical Management founder and Chief Executive Mark Mitchell will continue to lead that company and retain his existing management team.
Centene is expected to provide additional details during its investor presentation on Friday.
Shares closed Wednesday at $55.73 and were inactive premarket. The stock is up 36% this year.
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View more information: https://www.marketwatch.com/story/centene-to-pay-200m-for-medical-management-stake-2013-12-12