Combined company to drive improvements in
health outcomes through technology enablement, data
analytics, and clinical expertise
MCLEAN,
Va. and NASHVILLE,
Tenn., Nov. 9, 2022 /PRNewswire/ -- CNSI, a
leading provider of innovative healthcare technology products and
solutions, and Kepro, a leading provider of technology-enabled care
management, quality oversight, and clinical assessment services
announced an agreement to merge. The combined company will help
government-sponsored healthcare agencies and payers expand
healthcare access, enhance quality, improve health outcomes, and
lower costs through its clinical services, provider management,
health claims and encounter processing, interoperability, and
health analytics services and solutions. CNSI is backed by funds
advised by global investment firm Carlyle (NASDAQ: CG), and Kepro
is a portfolio company of funds advised by Apax Partners LLP ("Apax
Funds"), which will be exiting its investment through this
transaction.
Todd Stottlemyer, CNSI's CEO,
will lead the new company. Susan
Weaver, MD, Kepro's President and CEO, will become
President. Both leaders will sit on the company's board of
directors.
"The combination of CNSI and Kepro aligns with the
strategic objectives of both companies to deploy technology-enabled
products, solutions, and services that help our clients achieve
their mission and better serve their priority populations," said
Stottlemyer. He added: "I am excited about our ability to provide a
full array of services and solutions that will help our clients
meet the holistic health needs of those they serve."
"Healthcare is changing rapidly, and we believe the combination
of our capabilities will help our clients meet and adapt to these
changes," said Dr. Weaver. "Kepro gains a partner with extensive
large-scale, systems implementation experience, and CNSI gains a
partner with deep clinical expertise. Together our employees will
also benefit with new opportunities to diversify their skillsets
and advance their careers," Weaver added.
Dayne Baird, CNSI board member
and managing director at Carlyle, said: "We are incredibly excited
by the combination of these two highly differentiated businesses
and the opportunity to partner with Todd, Susan, and their talented
leadership teams. The combination brings CNSI's leading health
technology capabilities together with Kepro's clinical expertise
and unique service offerings, allowing the company to better serve
its clients and improve care quality and health outcomes."
Andrew Cavanna, Kepro board
member and partner at Apax, said: "We are proud to have supported
Kepro in its evolution over the past five years. Through the
leadership of Susan and her management team, the business grew its
capabilities and the value it delivers to its customers. We wish
the combined company every success in the future."
CNSI is headquartered in McLean,
VA, and Kepro is headquartered in Nashville, TN. Both locations will be
maintained. The newly merged company will rebrand in early
2023.
The new company is backed by Carlyle (NASDAQ: CG), a global
investment firm. Latham & Watkins LLP acted as legal advisor to
CNSI and Carlyle. Centerview Partners acted as an investment
advisor to Kepro and Apax, and Kirkland & Ellis served as legal
advisor to both Kepro and Apax. The transaction is expected to
close in December 2022, subject to
customary closing conditions.
About CNSI
CNSI delivers a broad range of health information technology
enterprise solutions and products to a diverse base of state and
federal agencies in the United
States that help clients achieve their mission, enhance
business performance, reduce costs, and improve the health of
individuals and communities. Headquartered in McLean, VA, CNSI's global workforce includes
1,200 employees, including a world-class team of technologists,
program managers, and subject matter experts with large-scale,
mission-critical information technology implementation
experience.
About Kepro
Founded in 1985 by physicians, Kepro provides technology-enabled
services for priority populations to help them remain in the home
or community of their choice. Kepro partners with government and
private healthcare payers to maximize healthcare quality, improve
accuracy, and increase efficiency. The company's three core
solution lines, care management, quality oversight, and assessments
and clinical eligibility, ensure that clients' beneficiaries
receive the right care delivered in the right place at the right
time. Kepro's workforce numbers over 1,700 employees, including 600
full-time clinicians, across 17 U.S.-based offices, as well as a
network of 4,500 physicians and 450 clinicians who serve on their
advisory and review panels.
About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm with deep
industry expertise that deploys private capital across three
business segments: Global Private Equity, Global Credit and Global
Investment Solutions. With $369
billion of assets under management as of September 30,
2022, Carlyle's purpose is to invest wisely and create value on
behalf of its investors, portfolio companies and the communities in
which we live and invest. Carlyle employs more than 2,100 people in
29 offices across five continents. Further information is available
at www.carlyle.com. Follow Carlyle on
Twitter @OneCarlyle.
About Apax Partners
Apax Partners LLP ("Apax") is a leading global private equity
advisory firm. For 50 years, Apax has worked to inspire growth and
ideas that transform businesses. The firm has raised and advised
funds with aggregate commitments of more than $60 billion. The Apax Funds invest in companies
across four global sectors of Tech, Services, Healthcare, and
Internet/Consumer. These funds provide long-term equity financing
to build and strengthen world-class companies. For further
information about Apax, please visit www.apax.com.
CNSI
Contact:
|
Kelly Schlageter
571-241-6342
|
|
Kepro
Contact:
|
Jay Toth
847-636-1649
|
|
Carlyle
Contact:
|
Brittany Berliner
212-813-4839
|
|
Apax
Contact:
|
Luke Charalambous
+44 20 7872 6494
|
|
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SOURCE CNSI