Molina Healthcare Amends Terms For Acquisition Of Bright HealthCare's California Medicare Business; The Purchase Price For The Transaction, Net Of Certain Tax Benefits, Is Reduced From The Previously Announced $510M To ~$425M
Portfolio Pulse from Benzinga Newsdesk
Molina Healthcare, Inc. (NYSE:MOH) has renegotiated the purchase agreement for acquiring Bright HealthCare's California Medicare business, reducing the purchase price from $510 million to approximately $425 million, net of certain tax benefits. This price now corresponds to 23% of the expected 2023 premium revenue of $1.8 billion. The acquisition is anticipated to add $1.00 per share to Molina's new store embedded earnings and is slated to close around January 1, 2024.
December 18, 2023 | 1:18 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Molina Healthcare has successfully reduced the acquisition cost for Bright HealthCare's California Medicare business, which is expected to positively impact its financials by adding $1.00 per share to new store embedded earnings.
The reduction in the acquisition cost from $510 million to $425 million is significant, indicating a better financial deal for Molina Healthcare. This cost efficiency, along with the expected addition of $1.00 per share to new store embedded earnings, is likely to be viewed positively by investors and could lead to a short-term increase in MOH's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100