Centene Corporation To Enter New York Through Transaction With Fidelis Care
The addition of
"We believe our over 30 years of experience, our local approach to the provision of healthcare, and our expertise and capabilities in caring for underserved populations will support the next generation of leadership in government programs in
"Our mission and values are the foundation of
Strategic and Financial Benefits of the Transaction
- Addition of Incremental Scale to Drive Profitable Growth: With this acquisition,
Centene expects to generate 2018 pro-forma total revenues of over$60 billion assuming aJanuary 1, 2018 closing date, solidifying its position as the largest Medicaid managed care organization in the country. The combined company anticipates driving profitable growth by leveragingCentene's local approach that provides members access to high quality and culturally sensitive healthcare services. The transaction will provideCentene with a leadership position inNew York's Medicaid and other State sponsored businesses,Medicare Advantage and dual eligible programs, as well as the Qualified Health Plan and Essential Plan. On a combined basis,Centene andFidelis Care served approximately 13.8 million members as ofJune 30, 2017 . - Highly Accretive to Earnings with Revenue Growth Opportunity: The transaction is expected to generate immediate accretion to Year 1 GAAP earnings per share, high single-digit and low- to mid-teens percentage accretion to adjusted earnings per share in Year 1 and Year 2, respectively.
Centene expects to achieve$25 million of pre-tax net synergies in Year 1 and$100 million run-rate synergies beginning in Year 2. Synergies will come from areas primarily attributable to reduced medical costs through the use ofCentene's systems and medical management programs, integration of a range of specialty services and efficiencies in G&A. - Opportunity to Leverage Centene's Capabilities:
Centene has made investments in a broad portfolio of capabilities including the suite of specialty services under envolve, the TruCare case management platform, the Centelligence data and analytics tools, and multiple award winning clinical programs. We look forward to the opportunity to bring these assets toNew York in order to further build on and enhance the existing capabilities ofFidelis Care .
Key Fidelis Care Investment Highlights
New York market leadership in state sponsored programs, individual marketplace and Essential plan, as well as a significant presence inMedicare Advantage - Fastest growing New York Medicaid and Managed Long-Term Care (MLTC) plan and 2nd fastest growing New York Medicare plan
- Only plan to operate Medicaid, Child Health Plus and MLTC in all 62 NY counties
- History of strong financial performance with 2013 to 2016 enrollment CAGR of approximately 20% and revenue CAGR of approximately 25%, driven by organic growth
Organization and Management
Upon closing of the transaction, Rev.
Financing and Approvals
Subject to market conditions,
The transaction is not contingent upon financing and
The transaction is expected to close in the first quarter of 2018, subject to various closing conditions and receipt of
Advisors
Conference Call
About
About
As a faith-based, mission-driven health plan,
Forward-Looking Statements
The company and its representatives may from time to time make written and oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act ("PSLRA") of 1995, including statements in this and other press releases, in presentations, filings with the
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