Magellan Health Services (NASDAQ:MGLN) will soon add another asset to its portfolio.
The company today announced that it has agreed to acquire Partners Rx, a privately held pharmacy benefits management firm. The price is $100 million, which Magellan will fund from its existing cash position. Additionally, "certain principal owners" of Partners Rx, which it did not identify in the press release, have subscribed to buy a total of $10 million worth of Magellan's restricted stock.
Partners Rx was founded in 2001, and its 2013 revenue is expected to come in at around $240 million.
Pharmacy benefits managers operate prescription drug plans for employers, insurers, and other customers. Magellan said most of Partners Rx's plans are sold by third-party administrators, and the company has about 300,000 covered lives.
Magellan considers Partners Rx to be an opportunistic buy. In the press release announcing the deal, the company quoted its CEO Barry Smith as saying that "with this acquisition, Magellan is enhancing our full-service [pharmacy benefits management] capabilities, adding scale, relationships and expertise, further complementing our unique medical pharmacy and specialty pharmacy capabilities. Our intention is to expand our footprint in the pharmacy marketplace and to bring competition where there is very little currently."
Magellan said it expects the acquisition to close in Q4.
-- Material from The Associated Press was used in this report.
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