Centene is selling Magellan Specialty Health to healthcare administration company Evolent Health in a deal worth up to $750 million.
Centene acquired Magellan Specialty Health in January as part of its acquisition of Magellan Health, according to a Nov. 17 news release from the payer. Magellan Specialty Health is a specialty benefit management company.
Evolent and Centene will launch a multi-year partnership upon the closing of the deal, according to the release. Centene will continue and expand its relationship with Magellan Specialty Health as well as its ongoing expansion of Evolent's oncology and end of life solutions.
Centene expects to receive $600 million at closing and will receive up to $150 million in cash and Evolent common stock in 2024 if certain performance metrics are met.
The deal is expected to close in the first half of 2023, subject to federal antitrust clearance and other closing conditions.