Med­i­caid man­aged-care provider Cen­tene Corp. is buy­ing in­surer Health Net in a $6.8 bil­lion cash and stock deal.

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Cen­tene will pay $28.25 and 0.622 shares of Cen­tene stock per Health Net share of com­mon stock for an im­plied price of $78.57 per share. That is 21% greater than Health Net’s clos­ing price on Wed­nes­day. Both com­pa­nies have seen ex­pan­sion un­der the Af­ford­able Care Act. Med­i­caid man­aged care is “def­i­nitely an area of growth” for pub­licly traded com­pa­nies and that is ex­pected to con­tinue with the Af­ford­able Care Act as “an ac­cel­er­ant,” said Bar­clays Cap­i­tal an­a­lyst Joshua Raskin.

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