LONG BEACH, Calif., Jan 19, 2010 (BUSINESS WIRE) — Molina Healthcare, Inc. (NYSE: MOH) today announced that it has entered into a definitive agreement to acquire the Health Information Management (HIM) business of Unisys Corporation (NYSE: UIS). The purchase price is expected to be approximately $135 million, subject to a standard working capital adjustment, to be paid in cash at closing using Molina’s credit facility. The acquisition, which is expected to close in the first half of 2010, is subject to customary regulatory approvals and closing conditions, including receipt of customer consents.
The HIM business provides design, development, implementation, and business process outsourcing solutions to state governments for their Medicaid Management Information Systems (MMIS). MMIS is a core tool used to support the administration of state Medicaid and other health care entitlement programs. The HIM business currently holds MMIS contracts with the states of Idaho, Louisiana, Maine, New Jersey, and West Virginia, as well as a contract to provide drug rebate administration services for the Florida Medicaid program. Annual revenues of the HIM business are currently approximately $110 million. The approximately 900 employees of the HIM business will become employees of Molina Healthcare upon closing of the transaction, and following the closing Unisys has agreed to provide certain transitional and technology support services to Molina Healthcare for up to one year.
“I am excited about our strategic acquisition of the Unisys Health Information Management business,” said J. Mario Molina, M.D., president and chief executive officer of Molina Healthcare. “The HIM business will complement our Medicaid health plan business and advance our strategic plan by expanding our services and product offerings beyond managed care. Now, more than ever, state governments need cost-effective programs that help improve the health of Medicaid beneficiaries. For the first time, Molina Healthcare will have, within a single company, the tools our state partners need to run their Medicaid programs, ranging from full-risk managed care health plans to fee-based information technology solutions.”
