Molina Healthcare plans to acquire ConnectiCare for $350 million, the company said July 23.
ConnectiCare, a subsidiary of New York City-based EmblemHealth, has around 140,000 members in Medicare, marketplace and commercial products in Connecticut.
Molina plans to fund the purchase with cash on hand, according to a July 23 news release. The deal is subject to regulatory approval and expected to close in the first half of 2025.
In a news release, EmblemHealth CEO Karen Ignagni said the sale is a "major step to support ConnectiCare's growth."
"We believe Molina's commitment to delivering on the promise of the Affordable Care Act, bringing coverage to so many Americans through the federal and state exchanges, makes it the ideal partner to take on ConnectiCare's mission," Ms. Ignagni said.
Molina Healthcare executives have told investors mergers and acquisitions would be a key part of the company's strategy. The company has completed eight transactions worth $11 billion in revenue in the past four years, CEO Joseph Zubretsky said in April.
In January, Molina Healthcare acquired Bright Health's Medicare Advantage business for $500 million, adding 109,000 members.
In 2023, Molina closed the acquisition of My Choice Wisconsin, a Medicaid MCO with 44,000 members. In 2022, it acquired AgeWell New York's Medicaid managed long-term care business for $110 million.