Magellan Health Completes Acquisition of Armed Forces Services Corp.

Magellan Health Inc. announced that it has completed its acquisition of Armed Forces Services Corp. (AFSC), a firm focused on providing and managing behavioral health and specialty services to the federal government and military.  AFSC has approximately 60 contracts with federal agencies and 1,800 employees and subcontractors that provide life coaching, counseling, training, rehabilitation, transition assistance, recruitment and retention, and family programs.  

The base purchase price is $117.5 million with an earn-out of $10 million.  AFSC had 2015 net revenues of approximately $135 million with segment profit of $16.5 million.