The company announced Wednesday that Centen will sell artificial intelligence tool Apixio to investment firm New Mountain Capital as the insurer continues to divest assets outside its core health insurance business.
Centen and New Mountain Capital did not disclose the purchase price or timeline for the closing of the deal, which is subject to regulatory approval.
According to a news release, the insurer does not expect the sale to affect its financial performance for the year. Last week, Centene lowered it profit expectations At least $6.60 per share for 2023, after federal regulators update the Medicare Advantage risk-adjustment and star rating programs and states resume Medicaid rescheduling. The company paid an undisclosed amount for Apixio in 2020.
Centene and New Mountain Capital did not immediately respond to requests for interviews.
The divestment is part of Centene’s ongoing value-creation plan, which began two years ago after activist investor Politan Capital Management bought a $900 million stake in the company due to its relatively low profit margins.
Last year, centen Shed Magellan Health Specialty and Pharmacy Benefit Management Businesses, sold to European provider groups and divested specialty pharmacy operator PANTHERx Rare. Centene to sell majority stake in home health provider US Medical Management in 2021.