Change Healthcare in Advanced Talks for Sale of ClaimsXten to New Mountain

(Bloomberg) -- Change Healthcare Inc. is in advanced talks to sell its payment integrity business to private equity firm New Mountain Capital, according to people with knowledge of the matter. 

A deal would value the business, ClaimsXten, at more than $2 billion, the people said, asking not to be identified because the information is private.

A final agreement with New Mountain hasn’t been reached and the talks could end without one, the people said. A deal may also depend on whether Change’s takeover by UnitedHealth Group Inc. unravels.

Representatives for Change, based in Nashville, Tennessee, and New Mountain declined to comment.

Bloomberg reported in January that Change was considering selling assets to help clear the way for its $7.8 billion acquisition by UnitedHealth. The U.S. Justice Department had opened an investigation into the transaction in March 2021, two months after it was announced, putting the deal in regulatory limbo.

The Justice Department sued in February to block the proposed deal, arguing it could limit competition among businesses that move money through the health-care system. Change has said it intends to continue working to close the merger.

UnitedHealth and Change have until April 5 to complete their deal, according to the amended merger agreement, unless the deadline is extended.

It isn’t clear whether the ClaimsXten divestment would go ahead if the merger falls apart, though UnitedHealth and Change told the Justice Department in a March filing that they had agreed to divest the business months ago.

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