Centene Corporation has signed a deal to sell its artificial intelligence platform Apixio to New Mountain Capital. Apixio’s clinical data curation and AI engine helps improve administrative, clinical, and financial outcomes for health plans and provider groups using patented data science infrastructure that analyzes structured and unstructured data to develop high-fidelity patient health profiles and support value-based care programs. The transaction is subject to regulatory approvals. Centene said it expects the deal to be neutral to its 2023 adjusted earnings per share.
Centene Corporation (NYSE: CNC) announced today that it has signed a definitive agreement to sell Apixio, a leading artificial intelligence platform that enables value-based care, to New Mountain Capital, a growth-oriented investment firm with more than $37 billion in assets under management. Centene acquired Apixio in December 2020.
Apixio improves administrative, clinical and financial outcomes for some of the nation’s leading health plans and provider groups using its proprietary clinical data curation and artificial intelligence engine. With a patented data science infrastructure, Apixio analyzes structured and unstructured data to develop high-fidelity patient health profiles and support value-based care programs.
“Apixio has been a trusted business partner since our relationship began in 2015,” said Sarah M. London, Chief Executive Officer of Centene. “As part of our ongoing portfolio review, it was important for us to find a strategic partner for Apixio with whom the business can continue to grow, innovate and thrive. We are confident that New Mountain Capital is well positioned to ensure that Apixio continues to support the success of its clients given their sector expertise and long-term focus.”
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“We admire Apixio as a leading healthcare technology company that offers a differentiated value proposition using machine learning and analytics,” said Matt Holt, Managing Director and President, Private Equity at New Mountain Capital. “Through continued investment in products, services and technology, we are excited to build Apixio into a ‘connected care’ platform that brings together critical infrastructure to enable the shift to outcomes-based reimbursement models.”
The transaction is subject to customary closing conditions, including regulatory approvals.
In the sale of Apixio, William Blair is serving as financial advisor to Centene, and Bass, Berry & Sims, PLC is serving as its legal counsel. J.P. Morgan Securities LLC is serving as financial advisor to New Mountain Capital, and Ropes & Gray LLP is serving as its legal counsel.
The Company expects the transaction to be neutral to 2023 adjusted EPS.
Source: BioSpace
