Molina Healthcare Inc. on Monday said that it had closed on its acquisition of the health information management business of Unisys Corp., which now will be known as Molina Medicaid Solutions.
The Long Beach managed care provider paid about $135 million in cash, which came from available money and the company’s credit facility. The unit provides outsourced services to state governments for administering Medicaid and other state health care entitlement programs. It has contracts in six states and generated about $110 million in revenue last year for Blue Bell, Pa.-based Unisys.
“Molina’s expertise in both Medicaid and in managed care gives us unique knowledge that will enable us to deliver Medicaid health information solutions for states and to optimize efficiency in ways that will reduce costs,” said Chief Executive J. Mario Molina in a statement. “We believe that Molina Medicaid Solutions will lay the foundation for an exciting new opportunity for our company.”
The company is scheduled to announce earnings on Wednesday.
Shares were down 64 cents, or 2 percent, to $28.53 in midday trading on the New York Stock Exchange.
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