Centene Corporation 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 at 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.”
“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.
About Centene Corporation
Centene Corporation, a Fortune 500 company, is a leading healthcare enterprise that is committed to helping people live healthier lives. The Company takes a local approach – with local brands and local teams – to provide fully integrated, high-quality, and cost-effective services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. Centene offers affordable and high-quality products to nearly 1 in 15 individuals across the nation, including Medicaid and Medicare members (including Medicare Prescription Drug Plans) as well as individuals and families served by the Health Insurance Marketplace and the TRICARE program. The Company also contracts with other healthcare and commercial organizations to provide a variety of specialty services focused on treating the whole person. Centene focuses on long-term growth and value creation as well as the development of its people, systems, and capabilities so that it can better serve its members, providers, local communities, and government partners.
Centene uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Centene is routinely posted and is accessible on Centene’s investor relations website investors.centene.com.
About New Mountain Capital
New Mountain Capital is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, credit, and net lease real estate funds with over $37 billion in assets under management. New Mountain seeks out what it believes to be the highest quality leaders in carefully selected “defensive growth” industry sectors and works intensively with management to build the value of these companies. Additional information about New Mountain Capital is available at newmountaincapital.com.
Originally announced May 3rd, 2023
