Molina Healthcare to acquire Unisys Medicaid unit for $135 million
20 Jan 2010
Molina Healthcare, Inc, a Medicaid healthcare provider has agreed to acquire the health information management business (HIM) of Unisys Corporation, the information technology company, for about $135 million in cash in order to expand its services and product offerings beyond managed care.
The Blue Bell, Pennsylvania-based Unisys HIM business provides system solutions and business process outsourcing services to state governments for administration of their Medicaid and other state health care entitlement programs.
The business, which generates approximately $110 million in annual revenue, has contracts with the states of Louisiana, New Jersey, West Virginia, Idaho and Maine. It also provides drug rebate administration services for the Florida Medicaid programme.
The Long Beach California-based Molina plans to pay for the acquisition, expected to close in the first half of this year, in cash at closing using its credit facility.
Following the closing of the transaction, Unisys has agreed to provide transitional and technology support to Molina for up to a year.
Molina Healthcare offers HMO programmes in nine states and serves about 1.5 million people, while the Unisys unit serves about 2.4 million people, Molina said.