Centene inked a deal to sell Magellan Specialty Health for more than $750 million to Evolent Health.
It’s the latest divestiture in Centene’s plan to sell non-core assets as part of a long-term strategy to improve the company’s profit margin.
“This transaction is another significant milestone in our ongoing portfolio review and value creation plan,” CEO Sarah London said in a statement.
In July, Centene announced plans to sell its international assets to a private hospital operator in France. Centene is underway on a review of every unit within the company to determine whether it should remain.
Magellan Specialty Health, also known as NIA, provides utilization management services. The unit was previously known as National Imaging Associates before it was purchased by Magellan in 2006. The Centene unit helps health plans manage the utilization of certain services, including in areas such as radiology, musculoskeletal, physical medicine and genetic testing.
Centene acquired Magellan Specialty Health earlier this year as part of its $2.2 billion purchase of Magellan Health.
Evolvent, founded in 2011, helps payers and providers manage and administer services, including utilization and billing.
The deal is subject to federal antitrust review.
Centene will receive $600 million at closing, with $400 million paid in cash and the remainder in Evolent stock. The deal is expected to close in the first half of next year.