Centene Corp., a managed care and commercial payer in St. Louis, will acquire Fidelis Care, a Rego Park, N.Y.-based nonprofit managed Medicaid and Medicare plan, for $3.75 billion.
The transaction is slated to close in the first quarter of 2018. Upon closing, Centene will solidify its stance as the country's largest Medicaid managed care organization.
Centene projects more than $60 billion in revenues in 2018 with the addition of Fidelis. Centene and Fidelis served a combined 13.8 million members as of June 30.
Rev. Patrick Frawley will maintain Fidelis' CEO role following the transaction's closing, and the company will keep its headquarters. In addition, Centene plans to take on Fidelis' roughly 4,000 employees.
The deal is subject to closing conditions and regulatory approvals.