Magellan Health in second round of sale process

18 April 2019 - 05:52 pm UTC

The sale process of Magellan Health [NASDAQ: MGLN] has advanced to the second round, five sources familiar with the situation said.
 
The Scottsdale, Arizona-based healthcare services company has wrapped up most of the management presentations with potential suitors, said three of the sources. A few parties, comprising both strategics and financial sponsors, moved into the next round, they said.
 
Among the financial sponsors in the process are the Carlyle Group [NASDAQ:CG], which owns WellDyneRx, a pharmacy benefits manager (PBM), four of the sources said. Anthem [NYSE: ANTM] is among the strategic suitors eyeing Magellan, the same sources said.
 
Late last month, Magellan announced that it had reached a settlement with activist Starboard Value. Under terms of the agreement, four new independent directors were added to its board.
 
Magellan, Goldman and Carlyle declined to comment. Anthem did not respond to requests for comment.
 
by Bhavna Kaul, with analytics by Kevin Ketcham