Insurer Centene to buy Magellan Health in $2.2b deal

Health insurer Centene Corp said on Monday it would buy Magellan Health Inc in a deal valued at $2.2 billion, including debt, to strengthen its business that provides mental health services.

Centene has offered $95 per share in cash, a 14.7 per cent premium to Magellan's Thursday close, the companies said in a joint statement.

Magellan Health is a pharmacy benefits manager and provides mental health-related services.

Centene said it intended to fund the cash portion of the deal through debt financing and that J.P. Morgan has provided a $2.38 billion bridge financing commitment.