- UnitedHealth Group Inc (NYSE: UNH) has announced it is buying Change Healthcare Inc (NASDAQ: CHNG) as part of a $13 billion deal. These are the details.
UnitedHealth Group Inc (NYSE: UNH) has announced it is buying Change Healthcare Inc (NASDAQ: CHNG) as part of a $13 billion deal, including debt owed by Change Healthcare. As part of the deal, UnitedHealth is going to pay $25.75 per share in cash, a 41% premium over Change Healthcare’s closing price on Tuesday of $18.24.
Through the acquisition, Change Healthcare will be merged with UnitedHealth’s OptumInsight in order to provide data analytics and insights to the healthcare sector. And the combination is expected to simplify medical services and improve health outcomes while also lowering costs. The acquisition is known as being one of UnitedHealth’s largest deals.
Change Healthcare’s CEO Neil de Crescenzo is going to lead the combined business unit as the CEO of OptumInsight. And the deal is expected to close in the second half of 2021.
“Together we will help streamline and inform the vital clinical, administrative and payment processes on which health care providers and payers depend to serve patients. We’re thrilled to welcome Change Healthcare’s highly skilled team to create a better future for health care.”
— Andrew Witty, President of UnitedHealth Group and CEO of Optum
“This opportunity is about advancing connectivity and accelerating innovations and efficiencies essential to a simpler, more intelligent and adaptive health system. We share with Optum a common mission and values and importantly, a sense of urgency to provide our customers and those they serve with the more robust capacities this union makes possible.”
— Neil de Crescenzo, President and CEO of Change Healthcare
“Change Healthcare has made significant progress executing its strategic objectives, including advancing innovation, accelerating growth and improving the effectiveness of the U.S. health system. We are delighted to have in Optum a partner that shares a common vision of creating a better future for health care for the people and communities we serve and see this combination as in the best interests of all of our stakeholders.”
— Howard Lance, Chairman of the Board of Directors of Change Healthcare