Conduent sells claims unit to MedRisk for $240Mn
NEW JERSEY, UNITED STATES — Business services provider Conduent Incorporated (Conduent) has reached an agreement to divest its Casualty Claims Solutions business to MedRisk, a managed care organization dedicated to the physical rehabilitation of workers’ compensation patients.
Details of the $240-million deal
The transaction, valued at $240 million in cash subject to customary adjustments, includes Conduent’s workers’ compensation and auto casualty bill review solutions and services.
This includes the processing of medical bills, clinical services, and a portfolio of Strataware bill review software products.
As part of the deal, current Conduent employees in the Casualty Claims Solutions unit will transition to MedRisk.
Depending on satisfying customary closing conditions and regulatory approvals, the transaction is expected to be finalized in the third quarter of 2024.
After the sale, Conduent will continue providing mailroom services for its current casualty claims clients, including MedRisk.
Strategic move for Conduent
“This transaction is an additional example of the significant progress we have made in our strategy to streamline our portfolio while increasing our focus on core capabilities to fuel Conduent’s growth,” said Cliff Skelton, Conduent President and CEO.
“MedRisk is well-established in the workers’ compensation industry, and we are confident in a seamless transition for our associates and clients.”
Based in King of Prussia, Pennsylvania, MedRisk is the largest managed care organization specializing in the physical rehabilitation of workers’ compensation patients in the U.S.
Conduent is based in New Jersey and offers business solutions to commercial, government, and transportation segments.
In December 2023, the firm sold its Curbside Management Solutions and Public Safety Solutions businesses to tech firm Modaxo for approximately $260 million.
Conduent President and Chief Executive Officer Cliff Skelton said that the earnings from the sale will be used to reduce the firm’s debt.
Conduent ranked #32 in the OA500 2024, an objective index of the world’s top 500 outsourcing companies.
