Centene Corporation Acquires AirLogix, Inc.; Transaction Expands Specialty Platform to Include Disease Management Services.ST. LOUIS -- Centene Corporation (NYSE NYSE See: New York Stock Exchange : CNC (Computerized Numerical Control) See numerical control. CNC - Collaborative Networked Communication ) today announced that it has acquired AirLogix, Inc., an industry leader in respiratory disease management. The acquisition of AirLogix's disease management capabilities will further enhance Centene's suite of specialty services, which is managed by CenCorp Health Solutions, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. . Under the terms of the agreement, Centene paid approximately $35 million in cash for AirLogix. The consideration was sourced from Centene's $100 million revolving credit agreement Revolving credit agreement A legal commitment in which a bank promises to lend a customer up to a specified maximum amount during a specified period. revolving credit agreement See line of credit. . The deal provides for additional consideration of up to $5 million based on achieving certain performance criteria. Michael F. Neidorff, Chairman and Chief Executive Officer of Centene Corporation, stated, "The acquisition of AirLogix reflects our ongoing strategy to build a multi-line healthcare enterprise that significantly demonstrates the ability to effectively and consistently manage costs. The success of Centene's Margin Protection Program(TM) and our expansion into disease management, which combines Medicaid and commercial recipients, will continue to provide predictable outcomes and control of healthcare costs on a sustainable and long-term basis. AirLogix's disease management experience, combined with our financial strength, will allow us to better serve our expanding SSI (1) See server-side include and single-system image. (2) (Small-Scale Integration) Less than 100 transistors on a chip. See MSI, LSI, VLSI and ULSI. 1. (electronics) SSI - small scale integration. 2. membership and support AirLogix's existing customer base." Susan B. Riley, Chief Executive Officer of AirLogix, added, "We are very enthusiastic about this combination. We believe it will provide us with additional resources to enhance our capabilities to assist consumers to promote behavior modification behavior modification n. 1. The use of basic learning techniques, such as conditioning, biofeedback, reinforcement, or aversion therapy, to teach simple skills or alter undesirable behavior. 2. See behavior therapy. , better manage their diseases and enrich their overall quality of life. We share Centene's focus on customer service and the belief that healthcare takes place locally in the community. We look forward to integrating our experience of managing health concerns such as chronic obstructive pulmonary disease chronic obstructive pulmonary disease n. Abbr. COPD A chronic lung disease, such as asthma or emphysema, in which breathing becomes slowed or forced. and asthma." Centene estimates that this acquisition will initially generate annual revenues of approximately $18 million. The earnings impact from the transaction is expected to be nominal in 2005. The information provided in the fifth paragraph above contains forward-looking statements that relate to future events and future financial performance of Centene. These forward-looking statements represent the Company's estimates as of July 21, 2005. Subsequent events and developments may cause the Company's estimates to change. The Company disclaims any obligation to update this forward-looking financial information in the future. Readers are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, regulatory, competitive and other factors that may cause Centene's or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Actual results may differ from projections or estimates due to a variety of important factors, including Centene's ability to accurately predict and effectively manage health benefits and other operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , competition, changes in healthcare practices, changes in federal or state laws or regulations, inflation, provider contract changes, new technologies, reduction in provider payments by governmental payers, major epidemics, disasters and numerous other factors affecting the delivery and cost of healthcare. The expiration, cancellation or suspension of Centene's Medicaid managed care contracts by state governments would also negatively affect Centene. About Centene Corporation Centene provides multi-line managed care programs and related services to individuals receiving benefits under Medicaid, including Supplemental Security Income Supplemental Security Income A Social Security program established to help the blind, disabled, and poor. (SSI) and the State Children's Health Children's Health Definition Children's health encompasses the physical, mental, emotional, and social well-being of children from infancy through adolescence. Insurance Program (SCHIP SCHIP State Children's Health Insurance Program ). The Company operates health plans in Indiana, Kansas, Missouri, New Jersey, Ohio, Texas and Wisconsin. In addition, the Company contracts with other healthcare organizations to provide specialty services including behavioral health, nurse triage triage Division of patients for priority of care, usually into three categories: those who will not survive even with treatment; those who will survive without treatment; and those whose survival depends on treatment. and pharmacy compliance. Information regarding Centene is available via the Internet at www.centene.com. About AirLogix AirLogix is an experienced and industry leader in chronic respiratory management. Through compassion and dedication, the AirLogix team has delivered effective, patient-centric Asthma and COPD COPD chronic obstructive pulmonary disease. COPD abbr. chronic obstructive pulmonary disease Chronic obstructive pulmonary disease (COPD) programs to over 400,000 members. Through their specialization in respiratory management, AirLogix uses self-care therapies, in-home interaction and powerful informatics processes to deliver effective clinical results, high patient-provider satisfaction and cost reductions in respiratory management. For more information, visit www.airlogix.com. |
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