LONG BEACH, Calif.--(BUSINESS WIRE)--Jun. 27, 2018--
Molina Healthcare, Inc. (NYSE: MOH) today announced that it has entered
into a definitive agreement to sell its wholly owned subsidiary, Molina
Medicaid Solutions (MMS), a Medicaid management information systems
(MMIS) business, to DXC Technology (NYSE: DXC). The divestiture, which
is expected to close in the third quarter of this year, is subject to
the satisfaction of customary closing conditions and the receipt of
certain third party consents and regulatory approvals.
“The sale of Molina Medicaid Solutions will give us the flexibility to
invest and refocus resources in our core health plan business,” said Joe
Zubretsky, president and chief executive officer for Molina Healthcare,
Inc. “We are confident that DXC will be an excellent partner for
Medicaid agencies, providers, and employees moving forward, and that
this transaction represents an opportunity for MMS to grow and unlock
value in its business.”
“For many years DXC Technology’s goal has been to provide the highest
quality services to state agencies in the administration of Medicaid
programs, including business processing, information technology
development, and administrative services,” said Mike Lawrie, DXC
Technology chairman, president and CEO. “Both MMS and DXC Technology
have proven track records and a shared commitment to these important
programs. Together, our deep experience and technology expertise can
bring new benefits to state agencies and Medicaid recipients.”
The net purchase price for the equity interests of MMS is estimated to
be approximately $220 million after certain adjustments, and the
transaction is expected to close in the third quarter of this year.
MMS provides support to state Medicaid agencies in the administration of
the states’ Medicaid programs, including business processing,
information technology development, and administrative services. MMS is
under contract with Medicaid agencies in six states and the U.S. Virgin
Islands.
DXC Technology provides health and human services to government agencies
across the United States through more than 8,000 professionals, offering
fiscal agent services, MMIS, program integrity, care management,
immunization registry, and eligibility services.
Molina was advised on financial matters by BofA Merrill Lynch and on
legal matters by Orrick, Herrington & Sutcliffe. DXC was advised by J.P.
Morgan Securities LLC on financial matters, and Latham & Watkins LLP and
Crowell & Moring LLP on legal matters.
About Molina Healthcare
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed health
care services under the Medicaid and Medicare programs and through the
state insurance marketplaces. Through its locally operated health plans,
Molina Healthcare served approximately 4.1 million members as of March
31, 2018. For more information about Molina Healthcare, please visit our
website at molinahealthcare.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This press release contains “forward-looking
statements” regarding the proposed transaction between Molina
Healthcare, Inc. and DXC Technology Company. All forward-looking
statements are based on current expectations that are subject to
numerous risk factors that could cause actual results to differ
materially. Such risk factors include, without limitation, risks related
to: the timely closing of the acquisition, including the need to obtain
third party consents, regulatory approvals, and clearance under the
Hart-Scott-Rodino (HSR) Antitrust Improvement Act of 1976; any
conditions imposed on the parties in connection with consummating the
transaction described herein; the ability of the parties to satisfy
other conditions to closing; and the possibility that the transaction
will not be completed on a timely basis or at all. Additional
information regarding the risk factors to which we are subject is
provided in greater detail in our periodic reports and filings with the
Securities and Exchange Commission, including our most recent Annual
Report on Form 10-K. These reports can be accessed under the investor
relations tab of our website or on the SEC’s website at sec.gov. Given
these risks and uncertainties, we cannot give assurances that our
forward-looking statements will prove to be accurate, or that any other
results or events projected or contemplated by our forward-looking
statements will in fact occur, and we caution investors not to place
undue reliance on these statements. All forward-looking statements in
this release represent our judgment as of the date hereof, and we
disclaim any obligation to update any forward-looking statements to
conform the statement to actual results or changes in our expectations
that occur after the date of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180627005418/en/
Source: Molina Healthcare, Inc.
Molina Healthcare, Inc.
Ryan Kubota, 562-435-3666
Investor
Relations
or
Laura Murray, 562-506-9208
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