Unisys wraps up $135M sale of health unit
Company completes cash deal with Molina Healthcare Inc.
- By David Hubler
- May 03, 2010
Unisys Corp. has completed the previously announced sale of its health information management business to Molina Healthcare Inc. for $135 million in cash, subject to adjustment, the company announced today.
The health information management business, which provides system solutions and business process outsourcing services to state governments for administering Medicaid and other state health care entitlement programs, represented approximately $110 million in revenue for Unisys in 2009, the government contractor’s statement said.
Molina Healthcare, of Long Beach, Calif., announced the planned acquisition in January.
According to Molina's announcement, Unisys’ HIM business held Medicaid Management Information Systems contracts with Idaho, Louisiana, Maine, New Jersey, and West Virginia, as well as a contract to provide drug rebate administration services for the Florida Medicaid program.
The approximately 900 Unisys employees in the health care unit will become employees of Molina Healthcare.
Unisys also agreed to provide certain transitional and technology support services to Molina Healthcare for up to one year, according to the statement.
The acquisition of Unisys’ HIM business will expand Molina’s services and product offerings beyond managed care, said Dr. J. Mario Molina, president and CEO of Molina Healthcare, in the January statement.
"For the first time Molina Healthcare will have, within a single company, the tools our state partners need to run their Medicaid programs, ranging from full-risk managed care health plans to fee-based information technology solutions,” he added.
Unisys, of Blue Bell, Pa., ranks No. 32 on Washington Technology’s 2009 Top 100 list of the largest federal government prime contractors.
David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.