MAGELLAN HEALTH,INC. (NASDAQ:MGLN) Files An 8-K Other EventsItem 8.01. Other Events
On December 13, 2016, Magellan Pharmacy Solutions, Inc., a Delaware corporation (“Magellan”), consummated and closed the previously announced acquisition of Veridicus Holdings, LLC (“Veridicus Holdings”), a Utah limited liability Company, (such acquisition, the “Acquisition”) to the Purchase Agreement (the “Veridicus Agreement”) dated November 19, 2016 by and among Magellan, Veridicus Holdings and Veridicus Health, LLC (“Veridicus Health”), a Delaware limited liability company and the holder of all of the issued and outstanding membership interests of Veridicus Holdings. Veridicus Holdings is a privately held pharmacy benefit management organization (“PBM”) with a unique set of clinical services and capabilities. As a result of the Acquisition, Veridicus will operate as a wholly-owned subsidiary of Magellan.
As consideration for the Acquisition, Magellan paid $72.5 million in cash (the “Base Price”) for all of the outstanding equity interests in Veridicus Holdings, subject to working capital adjustments as provided in the Veridicus Agreement.
The Purchase Agreement, dated November 19, 2016, by and among Magellan Healthcare, Inc., Veridicus Health and Granite Alliance Insurance Company (“Granite”) (the “Granite Agreement”) will be consummated and closed after regulatory approval is received from the Utah state insurance regulators. The parties anticipate the purchase of Granite will be completed in the first quarter of 2017 and the purchase price will be approximately $2.0 million.
