Molina Healthcare Inc. agreed to acquire Chicago-based Nextlevel Health Partners Inc. for about $50 million, net of certain tax benefits.
NextLevel Health is a Medicaid managed care company with an estimated premium revenue of around $270 million in 2019.
The transaction is expected to close in early 2020, subject to regulatory approvals and satisfaction of other customary conditions. Molina will fund the acquisition through available cash.
As part of the transaction, Molina will assume the right to serve approximately 50,000 Medicaid and managed long-term services and support members.
Centerview Partners LLC acted as financial adviser for Molina, while Sheppard Mullin was the company's legal adviser.