M&A · Healthcare · Services-Hospitals
Centene Corp to acquire Magellan Health Inc
Announced Jan 4, 2021 · Closed Jan 4, 2022
Deal value$2.20BEV $2.20B
Premium14.7%To unaffected price
EV / Adj. EBITDA9.6x0.4x EV / Revenue
ConsiderationAll cash$95.00 per share
Transaction
- Acquirer
- Centene Corp (CNC)
- Target
- Magellan Health Inc (MGLN)
- Buyer type
- Strategic
- Offer price per share
- $95.00
- Enterprise value
- $2.20B
- Status
- Closed Jan 4, 2022
Deal protections
- Break fee (target pays)
- $76.5M · 3.5%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Allen & Company, JPMorgan, Barclays
- To the target
- Goldman Sachs, Guggenheim
Sector context · Healthcare
- Comparable deals
- 4 in the prior 24 months
- Premium
- 14.7% vs. 96.0% sector median
- EV / Adj. EBITDA
- 9.6x vs. 11.5x sector median
- Break fee
- 3.5% vs. 2.5% sector median
Timeline
- AnnouncedJan 4, 2021
- Proxy filedFeb 8, 2021
- Definitive proxyFeb 19, 2021
- Shareholder voteMar 31, 2021
- ClosedJan 4, 2022
Valuation · fairness opinions
Discounted cash flowGoldman Sachs$85.55$100.89
Future share priceGoldman Sachs$56.61$98.30
Premiums paidGoldman Sachs$95.27$132.54
Precedent transactionsGoldman Sachs$59.80$79.09
Discounted cash flowGuggenheim$87.75$111.50
Discounted cash flowGuggenheim$81.75$96.25
Trading comparablesGuggenheim$71.25$85.00
Trading comparablesGuggenheim$57.38$87.52
Offer $95.00
Implied value per Magellan Health Inc share by analysis, from Goldman Sachs and Guggenheim · DCF discount rate 7%–8%.