UPDATED: April 25 at 1:12 p.m.
Change Healthcare has found a buyer for its payment integrity arm, ClaimsXten, though the sale is contingent on the closure of its merger with UnitedHealth Group.
According to a filing submitted Monday to the Securities and Exchange Commission, ClaimsXten will be sold off to an affiliate of TPG Capital for a base purchase price equal to $2.2 billion in cash. UnitedHealth is listed as the seller.
"The company believes that its merger with UnitedHealth Group will advance its ability to create products and services that improve the delivery of health care and reduce the high costs and inefficiencies of the health system, which the company will share broadly with patients, providers, and payers," Change wrote in the filing.
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Change Healthcare may have found a buyer for its ClaimsXten business, according to media reports.
Sources tell Bloomberg that the company is in advanced talks to sell off its payment integrity arm to New Mountain Capital in a deal that would earn ClaimsXten a $2 billion valuation. Change agreed to sell ClaimsXten in a bid to secure regulatory approval for its merger with UnitedHealth Group.
A final agreement has not been reached, Bloomberg reported and talks could still end without one. The deal may hinge on the future of UnitedHealth's acquisition of Change.
That Change was considering an asset sale to secure the closure of its deal with UnitedHealth was initially reported in January.
The merger was first announced in January 2021 and is valued at $8 billion in cash and $5 billion in debt. The Department of Justice sued to block the merger in late February, just days before the two companies planned to consummate the merger.
DOJ argued that the deal would allow UnitedHealth to access a treasure trove of data on competitors that it could use to get a leg up on those companies. In a court filing, UHG fired back that it already accesses such data through its Optum offerings and using it to boost UnitedHealthcare would amount to "economic suicide" for OptumInsight.
The case is set to go to trial on Aug. 1.