The parent company of Blue Cross and Blue Shield of Minnesota is selling Livio Health, a business that provides in-home health services to seniors.
Livio will be acquired by Lifespark, a St. Louis Park-based company with a technology platform for helping seniors avoid trips to the hospital.
As part of the agreement, Aware Integrated, the parent company of Eagan-based Blue Cross, becomes a minority owner in Lifespark through a cash investment made in addition to the valuation of Livio Health.
Detailed financial terms of the deal, announced Wednesday, were not disclosed.
"Our investment in Lifespark will help fuel greater growth and innovation in ways that benefit the entire system, across all populations," said Dana Erickson, president and chief executive at Blue Cross, in a statement.
Last year, Lifespark announced a $20 million round of funding that included Minneapolis-based UCare, a rival to Blue Cross in selling health plans to individuals and people covered by the Medicare and Medicaid government health insurance programs.
A regulatory filing from April shows UCare's investment in the company was about $10 million.
"This is more than an acquisition or an investment," said Joel Theisen, CEO and co-founder of Lifespark, in a statement. "It's a significant opportunity to provide Minnesota seniors in both the Twin Cities metro and outstate areas with a different experience than what they have now. ... This is a commitment to break the fragmentation and poor outcomes with an innovative solution."