Centene is selling off one of its international assets as it continues to evaluate its portfolio under the company's value creation initiative.
The government insurance giant has signed a definitive agreement to sell Circle Health Group, a United Kingdom-based hospital operator, to PureHealth, which is the Middle East's largest integrated health network. Centene said the deal, which is pending regulatory approvals, is valued at $1.2 billion, including debt assumed.
Circle Health runs 53 hospitals across the U.K., treating more than 2 million patients each year. It offers a range of services to privately insured, self-pay and National Health Service patients, Centene said, and employs 6,000 consultant specialists.
"Circle Health is an innovative healthcare organization that has had a significant impact for the benefit of patients across the United Kingdom," Centene CEO Sarah London said in the press release. "We are confident that this business will continue to thrive—providing access to high-quality care and delivering improved clinical outcomes under the ownership of Pure Health."
"This transaction marks another milestone in our portfolio review and showcases continued momentum against our value creation plan," she added.
Centene made an initial investment in Circle Health in 2019, before acquiring the remaining equity in the company in July 2021.
"We are delighted to welcome Circle Health Group into the PureHealth family," said Farhan Malik, CEO of PureHealth, in the release. "This acquisition marks an important milestone in our journey towards creating a global healthcare network which revolutionizes patient care."
The deal is expected to close in the first quarter of 2024.