January 23, 2023 — Centene Corporation (NYSE: CNC) announced today that it has completed the previously announced divestiture of Magellan Specialty Health to Evolent Health, Inc. (Evolent).
“We are pleased to reach another significant milestone in our ongoing portfolio review and value creation plan,” said Sarah London, Chief Executive Officer of Centene. “With the close of this transaction, we look forward to launching our national strategic partnership with Evolent and expanding our relationship with Magellan Specialty Health to ensure our members and providers have access to a broad and integrated portfolio of value-based specialty solutions.”
Centene acquired Magellan Specialty Health, also known as NIA, in January 2022 as part of its acquisition of Magellan Health, Inc.
Centene received approximately $660 million in proceeds at closing, subject to adjustment in accordance with the purchase agreement, with approximately $400 million paid in cash and the remainder paid in Evolent common stock. In addition, Centene will receive up to $150 million in cash and Evolent common stock in 2024 if certain performance metrics are achieved.
About Centene Corporation
Centene Corporation, a Fortune 500 company, is a leading healthcare enterprise that is committed to helping people live healthier lives. The Company takes a local approach – with local brands and local teams – to provide fully integrated, high-quality, and cost-effective services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. Centene offers affordable and high-quality products to nearly 1 in 15 individuals across the nation, including Medicaid and Medicare members (including Medicare Prescription Drug Plans) as well as individuals and families served by the Health Insurance Marketplace, the TRICARE program, and individuals in correctional facilities. The Company also contracts with other healthcare and commercial organizations to provide a variety of specialty services focused on treating the whole person. Centene focuses on long-term growth and value creation as well as the development of its people, systems, and capabilities so that it can better serve its members, providers, local communities, and government partners.
Centene uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Centene is routinely posted and is accessible on Centene’s investor relations website, https://investors.centene.com/.