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Investor Relations | Centene Corporation Centene Signs Definitive Agreement to Acquire Magellan Health - Jan 4 , 2021 - Acquisition will broaden and deepen Centene's whole health capabilities , while establishing a leading behavioral health platform at a critical time - Combined platform to deliver better health outcomes for complex populations through the integration of physical and mental health care - Important addition to Centene's Health Care Enterprises , under which Magellan Health will continue to operate independently - Focus on creating next generation behavioral health platform , aligned with Centene's technology strategy with additional growth opportunities in specialty care and pharmacy - Magellan Health CEO and management to remain in leadership roles , bringing additional talent to Centene and providing continuity - Value creation for shareholders through cost synergies and new growth opportunities Companies to Host Conference Call at 8:00 AM ET ST . LOUIS and PHOENIX , Jan. 4 , 2021 / PRNewswire / -- Centene Corporation ( NYSE : CNC ) and Magellan Health , Inc. ( NASDAQ : MGLN ) today announced that they have entered into a definitive merger agreement under which Centene will acquire Magellan Health for $ 95 per share in cash for a total enterprise value of $ 2.2 billion . The transaction , which was unanimously approved by the Boards of Directors of both companies , will broaden and deepen Centene's whole health capabilities and establish a leading behavioral health platform . The combined platform lays the foundation by which the company will continue to invest and innovate for its members , enabling improved health outcomes and faster , diversified growth . The combination brings together the companies ' complementary capabilities in behavioral health , specialty healthcare and pharmacy management . As a result of the transaction , Centene will establish one of the nation's largest behavioral health platforms across 41 million unique members with enhanced capabilities to deliver better health outcomes for complex , high- cost populations . Magellan Health will also add to Centene's leadership in government sponsored healthcare , bringing 5.5 million new members on government - sponsored plans . Magellan Health also provides specialty health services for 18 million third - party customer members in addition to Centene's own members . Furthermore , the transaction adds 2 million PBM members and 16 million medical pharmacy members , enhancing the scale of Centene's pharmacy platform with leading capabilities in specialty drug management . As part of Centene's Health Care Enterprises , Magellan Health will continue to independently support its existing customers and pursue growth opportunities . In addition , the transaction will create attractive shareholder returns through enhanced service capabilities , cross - sell opportunities and increased engagement with third - party customers . " There is a critical need for a fundamentally better approach to supporting people with complex , chronic conditions through better integration of physical and mental health care . This has become even more evident in light of the pandemic which has driven a dramatic rise in behavioral health needs , " said Michael F. Neidorff , Chairman , President and Chief Executive Officer of Centene . " This acquisition accelerates our diversification strategy and enhances our ability to build next generation capabilities in our specialty care business by leveraging our scale and investments in technology . Furthermore , we are very familiar with the range of Magellan Health's healthcare solutions as we have been one of their customers over many years , and our shared commitment to taking care of the most vulnerable populations makes this transaction a natural step . " " We're thrilled to bring together two businesses with complementary capabilities and a shared commitment to driving higher quality care for our members while lowering overall healthcare costs , " said Kenneth J. Fasola , Chief Executive Officer of Magellan Health . " By joining Centene under the Health Care Enterprises umbrella , we will maintain the independence necessary to ensure continued service to our third - party customers while accelerating the introduction of innovative solutions and reimagining behavioral health . I look forward to continuing to lead Magellan Health as we create exciting new opportunities for our customers and employees who will benefit from the creation of a best - in - class platform that meets our members ' needs today and in the future . " Strategic and Financial Benefits of the Transaction : • • • Broadening and deepening Centene's whole health capabilities at a critical time the acquisition increases Centene's scale and capability in behavioral care at a time when more than 2 in 5 Americans are struggling with mental or behavioral health issues associated with the COVID - 19 pandemic . 1 In addition , the sickest 5 % of the population consume 50 % of healthcare spending and Magellan Health's behavioral health , specialty health and pharmacy offerings focus on the portion of this spend that is addressable.2 Advancing Centene's specialty care and Health Care Enterprises platforms : the transaction brings additional scale in the company's growing specialty care division and complements Centene's evolving Health Care Enterprises portfolio , aligned with delivering the latest technologies and services across the full spectrum of its members . Enabling better health outcomes at lower total medical costs : by combining both companies ' capabilities in behavioral health and specialty healthcare , the acquisition enables more integrated solutions across physical and mental health to deliver better health outcomes at lower costs for complex , high - cost populations .