![]() The net purchase price of approximately $380 million represents less than 30% of premium revenues for the twelve months ended July 31, 2020, and the transaction is expected to be immediately accretive to adjusted earnings per share. The transaction provides added stability to Affinity’s Medicaid members and its state partner during this critical time.” Zubretsky continued, “The acquisition of Affinity provides us with a stable base of membership and revenue and will deepen Molina’s service offerings in New York, allowing us to meet the needs of hundreds of thousands of additional Medicaid members. We believe Molina’s strengths, including its strong balance sheet and demonstrated operating capabilities, will allow us to strengthen the financial base of Affinity and improve the business’s cost structure and operating margins,” said Joe Zubretsky, president and chief executive officer of Molina. “The addition of Affinity is yet another important marker in activating our growth strategy, and is a perfect product line and geographic fit. Affinity’s premium revenue for the trailing twelve months ended July 31, 2020, was approximately $1.3 billion. As of August 31, 2020, Affinity served approximately 284,000 Medicaid members. It has a 35 year history of supporting Medicaid managed care populations and has long demonstrated a deep commitment to the communities it serves. Molina intends to fund the purchase with cash on hand.Īffinity is a Medicaid managed care organization serving members in New York City, Westchester, Orange, Nassau, Suffolk, and Rockland counties in New York. The purchase price for the transaction is approximately $380 million, net of expected tax benefits and inclusive of an amount representing Molina’s target allocation of required regulatory capital. (NYSE: MOH) announced today that it has entered into a definitive agreement to acquire substantially all of the assets of Affinity Health Plan. Molina Healthcare To Acquire Affinity Health Plan For $380Mĩ/29/20 LONG BEACH, Calif.–(BUSINESS WIRE)–Molina Healthcare, Inc.
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