LONDON, UK: The Apax IX Fund, in which Apax Global Alpha Limited (AGA) is a limited partner, has signed the sale of its entire stake in portfolio company Kepro to CNSI, a provider of healthcare technology products and solutions.

Kepro is a leading provider of tech-enabled solutions to government-sponsored healthcare programs.

The transaction values AGA’s current look through investment in Kepro at approximately €20.6m. This represents an uplift of c.12.5% to last Unaffected Valuations1 and an uplift of c.€0.8m (c.€0.00 per share) in the Adjusted Net Asset Value (“Adjusted NAV”) of AGA at 30 September 2022.

Headquartered in Nashville, Tennessee, Kepro contracts with government-sponsored programs such as Medicaid and Medicare, to facilitate high-quality healthcare for priority populations.

Kepro structures its business into three business lines: care management, quality oversight and assessments & clinical eligibility. In addition to utilising technology as the backbone for its services, Kepro sells standalone software solutions to four Medicaid programs.

Apax IX acquired Kepro in 2017. The original investment thesis was to back a leading player in an attractive, fragmented market which was benefitting from increased outsourcing by government payers looking to ensure cost-efficient quality and compliance.

Over the past five years, Apax IX has supported the business on several growth initiatives including strategy, M&A, sales optimisation and talent acquisition, which together generated strong commercial momentum and helped transform the business into a national, tech-enabled market leader.

Andrew Cavanna, Kepro Board Member and Partner at Apax Partners, said: “We are proud to have supported Kepro in its evolution over the past five years. Through the leadership of Dr Susan Weaver and her management team, the business grew its capabilities and the value it delivers to its customers. We wish the combined companies every success in the future.”

AGA, whose shares are listed on the London Stock Exchange, provides investors with access to a diversified portfolio of private equity funds advised by Apax Partners as well as a focused portfolio of debt and equity investments (“Derived Investments”). In May 2016, AGA made a commitment of c.€328m to Apax IX.

CNSI delivers a broad range of health information technology enterprise solutions and products to a diverse base of state and federal agencies in the United States that help clients achieve their mission, enhance business performance, reduce costs, and improve the health of individuals and communities. Headquartered in McLean, VA, CNSI’s global workforce includes 1,200 employees, including a world-class team of technologists, program managers, and subject matter experts with large-scale, mission-critical information technology implementation experience.