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TPG Capital closed its $2.2 billion deal for Change Healthcare’s claims-editing business on Wednesday.
“We are pleased to complete our acquisition of ClaimsXten and look forward to working with the team to grow the newly established company,” the private equity group said in a statement. A spokesperson for Change Healthcare also confirmed the transaction is finished.
TPG Capital agreed in April to buy the claims-editing software from UnitedHealth Group. The deal was contingent on UnitedHealth Group’s $13 billion purchase of Change Healthcare surviving an antitrust lawsuit from the Justice Department. A federal judge tossed that challenge to the merger last month. UnitedHealth sealed the Change Healthcare deal on Monday, paying $7.8 billion to acquire it and assuming $5 billion of the technology company’s debt.
The Justice Department could still appeal Judge Carl Nichols’ decision, but now faces the challenge of breaking up a combined company. The Justice Department did not immediately respond to an interview request.
Nichols’ ruling in the U.S. District Court for the District of Columbia ordered UnitedHealth to divest ClaimsXten as a condition of the larger transaction.
With TPG Capital’s acquisition complete, the private equity group plans to name a CEO for ClaimsXten. According to Nichols’ opinion, the company intends to tap Carolyn Wukitch, who has been Change Healthcare’s senior vice president and general manager of network and finance management.
About 375 Change Healthcare employees will join TPG Capital and continue working at ClaimsXten as part of the divestiture, according to the judge. Wukitch and other former Change Healthcare leaders will manage operations.
TPG Capital plans to more than double ClaimsXten’s research and development budget from $14 million in fiscal 2022 to $30 million by 2026, the judge wrote.
UnitedHealth Group did not immediately respond to an interview request.
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