Centene signs definitive agreement to acquire Magellan Health
Key summary: In Feb '19, Starboard nominated 6 directors and in Mar '19 reached Agreement. In Jan '21: Magellan Health announced Merger with Centene.Market Cap: $2.4 billion | Magellan Health, Inc. provides healthcare management services in the United States. It operates in Healthcare and Pharmacy Management segments.
SUMMARY
On February 22, 2019, Starboard (9.8%) delivered a letter to the company nominating a slate of six director candidates for election to the Board at the 2019 annual meeting of shareholders. Starboard highlighted in the letter that operational missteps, including missed execution and poor capital allocation, had resulted in extensive periods of share price underperformance. Further, it stated its belief that the Board should evaluate a broad range of strategic alternatives including a sale of the company, a separation and sale of individual assets or any other opportunities to maximize value for shareholders.
On March 28, 2019, Starboard (9.9%) entered into an agreement with the company and pursuant to it, the company agreed to increase the size of the Board from nine to thirteen and appoint one Starboard representative and three new directors to the Board.
On January 4, 2021, Magellan Health and Centene Corporation announced that they had entered into a definitive merger agreement under which Centene will acquire Magellan Health for $95 per share in cash for a total enterprise value of $2.2 billion. Source
On January 4, 2021, Starboard (9.3%) entered into a Merger Support Agreement with Centene Corporation in connection with the merger agreement dated January 4, 2021. Source