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Centene will sell artificial intelligence tool Apixio to investment firm New Mountain Capital as the insurer continues to divest assets outside of its core health insurance business, the company announced Wednesday.
Centene and New Mountain Capital did not disclose a purchase price or a timeline for closing the deal, which is subject to regulatory approval.
The insurer does not expect the sale would to impact its financial performance for the year, according to a news release. Last week, Centene lowered its profit expectations for 2023 to at least $6.60 per share, after federal regulators updated the Medicare Advantage risk-adjustment and star ratings programs and states resumed Medicaid redeterminations. The company paid an undisclosed sum for Apixio in 2020.
Centene and New Mountain Capital did not immediately respond to interview requests.
The divestiture is part of Centene’s ongoing value-creation plan, which the company initiated two years ago after its comparatively low profit margins led activist investor Politan Capital Management to purchase a $900 million stake in the company.
Last year, Centene shed Magellan Health’s specialty and pharmacy benefits management businesses, sold European provider groups and divested specialty pharmacy operator PANTHERx Rare. Centene sold a majority stake in home health provider U.S. Medical Management in 2021.
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