Health care technology solutions provider CNSI and Kepro, a provider of technology-enabled care management, quality oversight and clinical assessment services, are merging to form one health care solutions company.
CNSI CEO Todd Stottlemyer will lead the new company, and Kepro President and CEO Dr. Susan Weaver will become president. Both will sit on the company’s board of directors.
“The combination of CNSI and Kepro aligns with the strategic objectives of both companies to deploy technology-enabled products, solutions, and services that help our clients achieve their mission and better serve their priority populations,” Stottlemyer said.
“I am excited about our ability to provide a full array of services and solutions that will help our clients meet the holistic health needs of those they serve.”
The combined company will help government-sponsored health care agencies and payers expand health care access, enhance quality, improve health outcomes and lower costs. The company will do so through clinical services, provider management, health claims and encounter processing, interoperability, and health analytics services and solutions.
“Healthcare is changing rapidly, and we believe the combination of our capabilities will help our clients meet and adapt to these changes,” Weaver said. “Kepro gains a partner with extensive large-scale, systems implementation experience, and CNSI gains a partner with deep clinical expertise. Together our employees will also benefit with new opportunities to diversify their skillsets and advance their careers.”
CNSI is headquartered in McLean, Virginia, and Kepro is headquartered in Nashville, Tennessee. Both locations will remain, and the new company will rebrand in early 2023.
CNSI is backed by funds advised by global investment firm Carlyle. Kepro is a portfolio company of funds advised by Apax Partners LLP, which will be exiting its investment through this transaction as the new company is backed by global investment firm Carlyle.
“We are incredibly excited by the combination of these two highly differentiated businesses and the opportunity to partner with Todd, Susan, and their talented leadership teams,” said Dayne Baird, CNSI board member and managing director at Carlyle. “The combination brings CNSI’s leading health technology capabilities together with Kepro’s clinical expertise and unique service offerings, allowing the company to better serve its clients and improve care quality and health outcomes.”
Andrew Cavanna, Kepro board member and partner at Apax, said the firm is proud to have supported Kepro in its evolution over the past five years.
“Through the leadership of Susan and her management team, the business grew its capabilities and the value it delivers to its customers. We wish the combined company every success in the future,” he said.
The transaction is expected to officially close in December. Latham & Watkins LLP acted as legal adviser to CNSI and Carlyle; Centerview Partners acted as an investment adviser to Kepro and Apax; and Kirkland & Ellis served as legal adviser to both Kepro and Apax.