UnitedHealth Group to Buy Change Healthcare for $7.84 Billion
January 06 2021 - 6:53AM
Dow Jones News
By Colin Kellaher
UnitedHealth Group Inc. on Wednesday said it agreed to buy
Change Healthcare Inc. for $25.75 a share, or about $7.84 billion,
in cash.
The deal represents a roughly 41% premium to Tuesday's closing
price of $18.24 for Change, a Nashville, Tenn.,
healthcare-technology company.
UnitedHealth, a Minnetonka, Minn., health insurer, said it will
combine Change with its Optum health-services unit.
UnitedHealth said private-equity funds affiliated with
Blackstone Group Inc., which own about 20% of Change, have agreed
to vote in favor of the deal, which is slated to close in the
second half the year.
UnitedHealth said it expects the acquisition will add about 50
cents to adjusted per-share earnings in 2022, with the benefits
advancing strongly in subsequent years.
Shares of Change rose 38.4% to $25.25 in premarket trading.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
January 06, 2021 06:38 ET (11:38 GMT)
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