Molina Healthcare Inc. MOH, +2.22% announced on Friday a deal for the purchase of Bright Health Group Inc. BHG, +5.59% California’s Medicare Advantage business. This includes Brand New Day, Central Health Plan of California and Brand New Day. The price is $510 million net of tax advantages. Molina stated in a press release that the price is equal to 28 percent of projected 2023 premium revenues of $1.8 billion. Molina stated that the Medicare Advantage business offered products in 23 California counties and overlapped with its Medicaid business within the state. As of March 31, Molina reported about 125,000 Medicare Advantage members. The transaction is subject to approval by federal and state regulators. It is expected to be completed early next year. Molina’s shares have fallen 10.7% year-to-date, while Bright Health has dropped 79%. Bright Health shares rose 24% in premarket trading on Friday.