Navient to sell Healthcare Services business to CorroHealth as part of ongoing plan to simplify company
13 Agosto 2024 - 10:19PM
Navient (Nasdaq: NAVI) announced today that it had reached an
agreement to sell its Healthcare Services business to CorroHealth,
a leading health technology company.
“This transaction is an important achievement in our initiative
to explore strategic options for our Business Processing Solutions
division and our strategic objectives to simplify our company,
reduce our expense base, and enhance our flexibility,” said Dave
Yowan, president and CEO of Navient. “CorroHealth is a great match
for Xtend and its colleagues and clients.”
Doing business as Xtend Healthcare, Navient’s healthcare revenue
cycle management organization is headquartered in Hendersonville,
Tenn. CorroHealth will continue to operate Xtend from its
Hendersonville offices. As part of the agreement, approximately 950
employees will join CorroHealth.
“We are very pleased to bring the Xtend team and technology to
CorroHealth,” said CorroHealth CEO Pat Leonard. “This will allow us
to offer an even more fully rounded suite of solutions to our
customers, further strengthening their financial position, and
empowering them to focus on providing high quality health
care.”
“The Xtend team is excited to join a world-class health
technology leader like CorroHealth,” said Mike Morris, CEO of Xtend
Healthcare. “As part of the CorroHealth team, we will have a
broader scope of capabilities and automation tools to offer our
customers.”
The transaction is expected to close by the end of September,
subject to certain conditions. Additional information can be found
in the 8-K filed by Navient today. Navient was advised on the
transaction by Houlihan Lokey and WilmerHale.
The purchase price for the Healthcare Services business is $365
million cash consideration, subject to customary adjustments. The
amount of the net gain from the sale has not yet been determined,
and the final financial statement impact of the sale will depend
on, among other things, net sale proceeds and the book value at the
time of closing. As of June 30, 2024, the book value of the
Healthcare Services business was approximately $136 million,
including $113 million of goodwill and acquired intangible
assets.
Navient remains in active discussions about the potential sale
of its Government Services businesses. The financial statement
impact of the Government Services business process, and any
resulting loss or gain, is uncertain at this time. The book value
of the Government Services business as of June 30, 2024, was
approximately $192 million, including $138 million of goodwill and
acquired intangible assets.
About NavientNavient (Nasdaq:
NAVI) provides technology-enabled education finance and business
processing solutions that simplify complex programs and help
millions of people achieve success. Our customer-focused,
data-driven services deliver exceptional results for clients in
education, healthcare, and government. Learn more at
navient.com.
Contacts:Navient Media: Paul
Hartwick, 302-283-4026, paul.hartwick@navient.com Navient
Investors: Jen Earyes, 703-984-6801, jen.earyes@navient.com
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