Subsequent Events

6 Months Ended

Jun. 30, 2016

Subsequent Events

Subsequent Events

NOTE F—Subsequent Events

        Pursuant to the May 15, 2016 share purchase agreement (the "AFSC Agreement") with Armed Forces Services Corporation ("AFSC"), on July 1, 2016 the Company acquired all of the outstanding equity interests of AFSC. AFSC has extensive experience providing and managing behavioral health and specialty services to various agencies of the federal government, including all five branches of the U.S. Armed Forces.

        Under the terms of the AFSC Agreement, the base purchase price is $117.5 million plus potential contingent payments up to a maximum aggregate amount of $10.0 million. The contingent payments are based on the retention of certain core business of AFSC. Certain key members of AFSC's management, who are also shareholders, will reinvest a portion of their proceeds in Magellan restricted common stock. The stock is subject to vesting over a two-year period.

        The Company will report the results of operation of AFSC within the Healthcare segment.