Celtic To Acquire NovaSys Health
In addition to traditional TPA services, NovaSys also offers its clients a preferred provider organization (PPO) network of hospitals, physicians and ancillary providers.
The acquisition of NovaSys expands Centene's national presence, increasing to 11 the number of states that the company currently operates in with the addition of Arkansas.
The transaction is expected to close in the second quarter of 2010 and will be funded out of operating cash flow. Including transaction costs, the company expects the financial impact of the acquisition will be immaterial in 2010 and accretive to earnings by approximately $0.02 to $0.03 per share on an annual basis.
John Ryan, CEO of NovaSys, said: “Our involvement in the Arkansas medicaid expansion program and long-standing relationship with both the state and key healthcare providers in the market make us a natural partner for Centene and Celtic.
“Our broad capabilities and experience will allow us to help vertically integrate Celtic's operations in claims processing, as well as strengthen our combined capabilities as a platform for hybrid products, both in Arkansas and other new markets.”
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