Molina Healthcare (MOH) – Get Report said on Tuesday that it entered a definitive agreement to buy Affinity Health Plan assets for $380 million cash, expanding Molina’s Medicaid health benefits in New York.
“The acquisition of Affinity provides us with a stable base of membership and revenue and will deepen Molina’s service offerings in New York, allowing us to meet the needs of hundreds of thousands of additional Medicaid members,” Molina Chief Executive Joe Zubretsky said in a statement.
“The transaction provides added stability to Affinity’s Medicaid members and its state partner during this critical time.”
The deal should immediately add to Molina’s adjusted earnings per share, the Long Beach, Calif., company said.
Molina and Affinity expect to close the deal in the second quarter of 2021, subject to conditions including regulatory clearances.
Based in New York, Affinity is a Medicaid managed-care organization serving New York City and