Managed care company Molina Healthcare said it will pay $200 million for the remaining stakes in two subsidiaries of The Providence Service Corp.
Social services Providence Human Services and Providence Community Services bring Medicaid expertise to Molina and are complementary to its service of providing managed care to patients covered by government programs.
The deal is expected to be a revenue generator, with Providence reporting revenue of $346 million in 2014, according to Zacks.
[Also: Tracking 2015 mergers and acquisitions]
Molina focuses on arranging healthcare services for patients with complex requirements and the Providence subsidiaries deal with services related to behavioral and mental health, according to the Zacks report.
The closing is expected by the end of 2015.
Molina has entered into several acquisition deals this year.
In August, it said it would buy the Medicaid assets of Integral Health Plan, according to Zacks. In May, it agreed to acquire some of the assets of the Medicaid and MIChild businesses of HealthPlus of Michigan and its subsidiary, HealthPlus Partners.
Twitter: @SusanMorseHFN