Centene Corp. is buying New York-focused, privately held Fidelis Care for $3.75 billion, the Clayton-based insurer announced Tuesday.
The acquisition will help Centene expand its government-sponsored health care coverage to New York, the state with the second-largest managed care membership, the company said.
With Fidelis, Centene now has a significant footprint in the four states with the largest managed care membership: California, Florida, New York and Texas.
Centene said it intends to fund the purchase with $2.3 billion in new equity and $1.6 billion of new long-term debt.
The deal is expected to close in the first quarter of 2018.
Read more: St. Louis Post-Dispatch