Molina Healthcare Inc. announced June 27 it would sell its Medicaid management information systems business for roughly $200 million.
The Long Beach-based managed care provider said it had entered into a definitive agreement to sell Molina Medicaid Solutions to DXC Technology Co., of Tysons, Va.
The sale of MMS, a wholly owned subsidiary estimated at about $220 million, is expected to close in the third quarter of this year. The unit provides IT support to Medicaid agencies in six states and the Virgin Islands.
“The sale of Molina Medicaid Solution will give us the flexibility to invest and refocus in our core health plan business,” said Joe Zubretsky, chief executive of the Fortune 500 firm.
Molina was advised on financial matters by Bank of America Merrill Lynch, and on legal matters by Orrick, Herrington & Sutcliffe, of San Francisco. DXC was advised on financial matters by J.P. Morgan Securities, and on legal matters by Latham & Watkins, of Los Angeles, and Crowell & Moring, of Washington D.C.
Health business reporter Dana Bartholomew can be reached at firstname.lastname@example.org. Follow him on Twitter @_DanaBart.