Centene Corp. has agreed to acquire MHM Services Inc.
Under the terms of the agreement, Centene will acquire 100% of the stock of MHM, including its 49% ownership of Centurion, the correctional healthcare services joint venture between Centene and MHM.
MHM adds two new states to Centene's portfolio and expands Centurion's existing seven state correctional footprint to 14 states. Centene intends to fund the purchase price with a combination of cash and stock. The deal is expected to be accretive to earnings in the first 12 months.
The transaction is expected to close in the first quarter, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, approval by MHM stockholders and other customary closing conditions.