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.
“I am excited about our strategic acquisition of the Unisys Health
Information Management business”
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.”