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Marpai To Acquire US Third Party Administrator Maestro Health.

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Vincent

MANews-(C)2009-2022

US-based AI-technology company Marpai, Inc (NASDAQ: MRAI), working in the third-party administrator market supporting self-funded employer health plans, has signed a definitive agreement to acquire Chicago, US-based third-party administrator Maestro Health, which services over 80 self-insured employers, the company said.

At the closing the combined company will serve over 40,000 employee lives with expected combined proforma annual revenues of approximately USD 40m in 2022.

Maestro's Clinical Management and Cost Containment in-house capabilities will enhance Marpai's ability to deliver better value to its clients and better health outcomes to its members.

The purchase price of USD 22.1m is due in April 2024, but, subject to the company meeting its obligations under the agreement, may be financed over four years by the seller.

Together, the companies will continue to provide innovative health plan administration for self-insured clients driven by technology.

The acquisition is expected to more than double Marpai's revenues (exclusive of third parties' share of revenues), number of customers and number of members it serves.

This transaction is expected to close within 60 days, subject to completing certain regulatory notices and filings as well as satisfying certain other customary closing conditions.

Under the terms of the agreement, the purchase price of USD 22.1m will be payable in cash on April 1, 2024.

However, subject to the company meeting its obligations under the agreement, this payment may be financed over four years by the seller with minimum annual cash...

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