News Briefs: Centene Inks Deal to Spin Off Magellan Specialty Health
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Nov 18, 2022
Centene Corp. said on Nov. 17 that it reached a deal with Evolent Health, Inc. to sell the insurer’s subsidiary Magellan Specialty Health. Centene acquired Magellan Specialty Health — which offers utilization management solutions to health plans related to radiology, musculoskeletal care, physical medicine and genetic testing — in January 2022, when it bought the firm’s parent company, Magellan Health, Inc. The deal is part of Centene’s “value creation plan” in which it is spinning off other divisions, including the PBM Magellan Rx. Centene said it expects to receive approximately $600 million in proceeds at closing, and has the opportunity to receive another $150 million in cash and Evolent common stock in 2024 “if certain performance metrics are achieved.” The transaction is subject to U.S. federal antitrust clearance and other customary closing conditions, and it’s expected to close in the first half of 2023. Read more
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