Centene, a managed-care insurer, said that a subsidiary plans to acquire NovaSys Health, a health plan administrator in Arkansas.
Centene subsidiary to acquire Ark. company
The subsidiary, Celtic Group, has signed a definitive agreement to buy NovaSys Health, whose clients include Arkansas state and public school employees. Along with being a third-party administrator, NovaSys Health, based in Little Rock, Ark., also offers clients a PPO network.
The financial details of the transaction were not disclosed. The deal is expected to close in the second quarter and be funded with cash, St. Louis-based Centene said in a written statement. The acquisition will increase the number of states in which Centene operates to 11.
“The expansion of our Celtic operations and its capabilities is consistent with our strategy of effectively deploying capital to enhance our business,” said Frederick Manning, Celtic president and CEO, in a written statement.
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