Marpai to acquire employee health and benefits TPA Maestro Health
Marpai, a US-based insurtech company, has agreed to acquire Maestro Health, a third-party administrator (TPA) for employee health and benefits, for $22.1 million in cash.
Headquartered in Chicago, Maestro Health is said to serve more than 80 self-insured employers, covering nearly 25,000 employees.
Maestro Health is said to provide end-to-end health plan solutions by integrating cost containment services and in-house care management. The employee health and benefits TPA serves in more than 40 states in the US.
Its new owner, Marpai brings AI-powered health plan services to employers which pay directly for employee health benefits.
Brandon Wood — Maestro Health CEO said: “Combining our TPA experience with Marpai is incredibly exciting. Over the last couple of years, we have made significant investments in cost containment and clinical solutions that are delivering outstanding results for our customers.
“Marpai brings deep TPA domain expertise, expanded discount network options and incredibly sophisticated approaches to data analytics.
“The combined organization will help employers proactively provide benefits that are expected to lead to healthier and more satisfied member populations. This will be unmatched in the market.”
Marpai said that the in-house capabilities of clinical management and cost containment of Maestro Health will improve its ability to provide better value to its clients and enhanced health outcomes for its members.
Together, the two firms expect to continue delivering technology driven health plan administration for self-insured clients.
Upon the closing of the deal, the enlarged company will cater to more than 40,000 employee lives. The combined proforma annual revenues are expected to be around $40 million in 2022.
Edmundo Gonzalez — Marpai CEO said: “Maestro shares our vision on how to improve healthcare for employees and family members covered by self-insured plans.
“There are tremendous revenue synergies. Maestro has in-house care management that helps members live healthier lives, and we intend to roll this out to the Marpai member base.
“The Maestro cost containment solutions will also be rolled out to our client base. Marpai’s proactive match making of members to the best care will also be introduced to the Maestro client base.”
The deal, which is subject to the completion of some regulatory notices and filings and meeting of certain other customary conditions, is likely to close within 60 days.