Molina Healthcare Inc., a managed care organization serving government-sponsored health plans, will acquire the Medicaid health information management business of Unisys Corp. for approximately $135 million.

Blue Bell, Pa.-based Unisys operates Medicaid Management Information Systems in Idaho, Louisiana, Maine, New Jersey and West Virginia. It also provides drug rebate administration services for the Florida Medicaid program. The company's Medicaid business generates about $110 million in annual revenue. Approximately 900 employees at Unisys will become Molina Healthcare employees when the acquisition closes during the first half of this year.

Long Beach, Calif.-based Molina Healthcare contracts with state governments to offer Medicaid managed care plans in nine states. They are California, Florida, Michigan, Missouri, New Mexico, Ohio, Texas, Utah and Washington. The company also offers plans for the State Children's Health Insurance Program and Medicare in multiple regions of the nation.

Acquiring Unisys' Medicaid health information management business will complement Molina's Medicaid health plan business and expand product offerings beyond managed care, says J. Mario Molina, M.D., president and CEO.

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