TPG Capital closed a $2.2 billion deal for Change Healthcare’s claims editing business on Wednesday.
“We are delighted to have completed our acquisition of ClaimsXten and look forward to working with the team to grow the startup,” the private equity group said in a statement. A spokesperson for Change Healthcare also confirmed the transaction was closed.
TPG Capital agreed in April to purchase claims editing software from UnitedHealth Group. The deal is contingent on UnitedHealth Group’s $13 billion acquisition of Change Healthcare following an antitrust lawsuit from the Justice Department. A federal judge raised that challenge for the merger last month. UnitedHealth sealed the Change Healthcare deal on Monday, paying $7.8 billion to buy it and assuming the tech company’s debt of $5 billion.
The Justice Department can still appeal Judge Carl Nichols’ decision, but now faces the challenge of breaking up an incorporated company. The Justice Department did not immediately respond to a request for an interview.
Nichols’ ruling in the United States District Court for the District of Columbia ordered UnitedHealth to divest ClaimsXten as a condition of the larger transaction.
With the acquisition of TPG Capital completed, the private equity group plans to appoint a CEO for ClaimsXten. In Nichols’ opinion, the company intends to tap Carolyn Wukitch, who served as senior vice president and general manager of financial and network management at Change Healthcare.
According to the judge, about 375 employees of Change Healthcare will join TPG Capital and continue working at ClaimsXten. Wukitch and other former Change Healthcare leaders will manage operations.
TPG Capital plans to double ClaimsXten’s research and development budget from $14 million in fiscal 2022 to $30 million in 2026, the judge wrote.
UnitedHealth Group did not immediately respond to a request for an interview.
