Four years after it was sold for $155 million, Chicago employee benefits firm Maestro Health will be sold again, this time for $22 million.
New York City-based Marpai Inc. (Nasdaq: MRAI) said it's buying Maestro Health for $22.1 million that will be payable in cash on April 1, 2024.
Marpai is a third-party administrator that uses artificial intelligence to bring health care benefits to the self-insured employer market in the United States and Israel. Maestro is a TPA that services more than 80 self-insured employers.
"Maestro shares our vision on how to improve health care for employees and family members covered by self-insured plans," said Marpai CEO Edmundo Gonzalez in a statement. "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 purchase comes after Maestro Health was bought by French insurance provider AXA Group for $155 million in January 2018. At the time, it was described as a platform that allows businesses to customize their own human resources suite, offering personalized benefits solutions to businesses of all sizes. It was also one of the biggest Chicago tech acquisitions in 2018.
Maestro Health was one of Chicago's fastest-growing startups in the mid 2010s after it was founded by 2013 by Rob Butler.
Marpai went public in late October 2021, raising gross proceeds of $28.75 million with its shares priced at $4 each. Its shares now trade at about 92 cents.
Founded in Tampa, Florida, Marpai lists its headquarters at 401 Park Ave. South, Floor 10, in New York City, and has 148 employees, according to its annual report filed March 30.
