Transaction Expands Molina’s Medicaid Managed Long-Term Care Presence into Wisconsin
Molina Healthcare, Inc. (NYSE:MOH) (“Molina”) announced today that it has entered into a definitive agreement to acquire substantially all the assets of My Choice Wisconsin (“MCW”). The purchase price for the transaction is approximately $150 million, net of expected tax benefits and required regulatory capital.
MCW is a Medicaid managed care organization serving members across Wisconsin. It has a 22-year history of serving managed long-term services and supports (MLTSS) populations, with a deep commitment to the communities it serves. As of May 2022, MCW served over 44,000 MLTSS and core Medicaid members throughout Wisconsin, delivering approximately $1 billion in premium revenue for the 12 months ending March 31, 2022.
“The addition of My Choice Wisconsin to Molina’s expanding footprint is not only complementary to our existing Medicaid business in Wisconsin, but also representative of our strategic growth initiatives,” said Joe Zubretsky, President and CEO of Molina Healthcare. “Today’s announcement demonstrates our continuing success acquiring value enhancing revenue streams at attractive valuations.”
The transaction represents a strong strategic fit with Molina’s portfolio of core Medicaid, high-acuity, and duals businesses and brings additional scale to Molina’s growing MLTSS franchise and existing Wisconsin core Medicaid business. The transaction is expected to be immediately accretive to Molina’s adjusted earnings per share. Molina intends to fund the purchase with cash on hand. The transaction is subject to receipt of applicable federal and state regulatory approvals, and satisfaction of other customary closing conditions. It is expected to close in 2022.
