Centene completes divestiture of Apixio
The deal, estimated at $37 billion in assets, will likely be neutral to 2023's adjusted EPS, the insurer said.
Photo: Martin Barraud/Getty Images
Centene has completed its divestiture of Apixio, an artificial intelligence platform that enables value-based care. The company was divested to New Mountain Capital.
The insurer entered into a definitive agreement to divest Apixio back in May for $37 billion in assets. Centene acquired the company in December 2020.
WHAT'S THE IMPACT
Apixio seeks to improve administrative, clinical and financial outcomes for health plans and provider groups using its proprietary clinical data curation and artificial intelligence engine.
Within its data science infrastructure, the company analyzes structured and unstructured data to develop high-fidelity patient health profiles and support value-based care programs.
Centene CEO Sarah London said the company's relationship with Apixio started in 2015 and that the latter has been a "trusted business partner."
"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," she said. "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."
The insurer expects the transaction to be neutral to 2023 adjusted EPS.
THE LARGER TREND
Centene has been reviewing its portfolio, and has made a number of strategic divestitures in recent months to generate more value.
Centene posted $1.2 billion in profit in 2022, down from the $1.3 billion it logged the previous year. Revenue, however, jumped from $126 billion to $144.5 billion during that same time, which the payer attributed to a "disciplined focus" in 2022.
The increase in total revenues, the company said, was driven by organic Medicaid growth, primarily due to the ongoing suspension of eligibility redeterminations, 21% membership growth in the Medicare business and its acquisition of Magellan, and was partially offset by the PANTHERx Rx Rare divestiture.
Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com
