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Health insurer Molina Healthcare Inc. said Tuesday it will buy Unisys Corp.'s health information management business for $135 million in cash.

The business helps states design and run programs that are used to support Medicaid and other health care entitlements, Molina said. It has $110 million in annual revenue, and holds contracts with the states of Idaho, Louisiana, Maine, New Jersey, and West Virginia, as well as a contract to provide drug rebate administration services for Florida Medicaid program.

"The (Health Information Management) business will complement our Medicaid health plan business and advance our strategic plan by expanding our services and product offerings beyond managed care," said J. Mario Molina, president and CEO of Molina Healthcare.

Molina and Unisys said the deal is expected to close in the first half of 2010. Unisys will provide Molina with some transition and technology support services for up to one year after the closing. Molina said the health information management business has about 900 employees, and they will join Molina when the deal is complete.

In midday trading, shares of Long Beach, Calif.-based Molina rose 33 cents to $23.53. Shares of Unisys, which is based in Blue Bell, Pa., picked up 64 cents to $35.61.

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