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