AXA sells health insurance broker to US private equity firms
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Insurance giant AXA has entered into an agreement to acquire Maestro Health, a US health benefit administration company, for a total consideration of $155 million.
Maestro Health provides a digital integrated platform encompassing a full set of health benefit administration services and third-party administrator services for self-insured companies, including care coordination solutions for employees, enabling companies to be more effective in lowering healthcare costs and empowering employees to make better health-related choices. Founded in 2013, the Chicago-based company targets mid-size and large-size employers across the US, currently covering over 1 million individuals.
According to AXA, this transaction reflects its strong focus on the health business and supports its Payer-to-Partner strategy, in line with its Ambition 2020.
The company said that starting with a platform in the US, the most advanced and innovative market in this respect, it represents an important step towards building a comprehensive and long-term population health management solution to provide better care at lower cost.
"We are excited about this strategic investment, which reflects the Group’s ambition to dedicate Euro 200 million per year towards innovation. It provides an attractive opportunity to build our presence in the US health market with a new business model that has the potential of improving healthcare quality for millions of employees," said Guillaume Borie, chief innovation officer, AXA.
"Maestro Health has outstanding technology, assets and people, an agile organization and a close-knit culture, providing exciting prospects for our population health management strategy in the US market and beyond."
Rob Butler, CEO and founder of Maestro Health, stated: "I am convinced that combining our entrepreneurial spirit and AXA’s significant expertise in health will enable Maestro Health to accelerate the implementation of our shared long-term vision and to deliver even higher customer-value through continuous innovation."
The transaction is expected to complete before the end of first quarter of 2018.
AXA Group, Maestro Health, Acquisition, M&A, Guillaume Borie, Rob Butler, US