UnitedHealth to buy Change Healthcare for nearly $8 billion to boost tech services
Reuters
Published Jan 06, 2021 06:13AM ET
Updated Jan 06, 2021 08:20AM ET
(Reuters) -Health insurer UnitedHealth Group (NYSE:UNH) on Wednesday agreed to buy Change Healthcare (NASDAQ:CHNG) for $7.84 billion in cash to boost its healthcare technology services business under the Optum division.
UnitedHealth will pay $25.75 per Change Healthcare share, a premium of 41.2% to Tuesday's closing price. Shares of Change were trading near the offer price at $24.90.
The acquisition of Change, which collaborates with payers and providers to simplify billing and payment processes among other things, is expected to add to UnitedHealth's adjusted earnings per share by about 50 cents in 2022.
Optum offers data, software and services to insurance firms, physicians, hospitals and pharmaceutical companies. The unit accounted for more than half of UnitedHealth's total revenue of $65.1 billion in the quarter ended Sept. 30.
"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," Andrew Witty, president of UnitedHealth and chief executive officer of Optum, said in a statement on Wednesday.
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Written By: Reuters
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