Benzinga | Oct 8, 2021 09:35AM EDT

Molina To Buy AgeWell New York's Medicaid Managed Care Business For $110M

* Molina Healthcare Inc (NYSE:MOH) has agreed to acquire the Medicaid Managed Long Term Care business of AgeWell New York for approximately $110 million.

* AgeWell is a specialty managed care organization that provides long-term care services at home or in the community in The Bronx, New York (Manhattan), Queens, Kings (Brooklyn), Nassau, Westchester, and Suffolk counties.

* As of August 31, 2021, AgeWell served approximately 13,000 managed long-term services, with full-year 2020 premium revenue of roughly $700 million.

* "The addition of AgeWell to Molina's expanding New York footprint is not only complementary to our existing MLTSS business but also representative of our strategic growth strategy," said Joe Zubretsky, president and chief executive officer of Molina Healthcare.

* The transaction is expected to be immediately accretive to Molina's adjusted EPS and close by Q3 of 2022.

* Molina will fund the purchase with cash on hand and investments, which stood at $564 million as of June 30, 2021.

* Price Action: MOH stock closed at $277.12 on Thursday.