Health insurance behemoth UnitedHealth Group (UNH) agreed to buy home health and hospice caregiver Amedisys (AMED) for $3.3 billion in an all-cash deal that will expand UnitedHealth’s home healthcare business.
KEY TAKEAWAYS
- UnitedHealth Group has agreed to buy Amedisys, a home healthcare provider, for $101 per share.
- Amedisys will pay a $106 million fee to terminate its merger with Option Care, which offered to buy Amedisys for $97.38 per share in an all-stock agreement in May.
- Amedisys will merge with UnitedHealth’s subsidiary Optum after the deal gains shareholder and regulatory approval.
UnitedHealth will pay $101 per outstanding share of Amedisys in an all-cash transaction subject to shareholder and regulatory approval. Amedisys will merge with UnitedHealth subsidiary Optum.
The two companies had been negotiating the terms of the sale for weeks. UnitedHealth originally offered to buy Amedisys for $100 per share on June 5.
Amedisys had previously entered a merger deal with Option Care Health Inc. (OPCH), which offered in May to buy Amedisys for $97.38 per share in an all-stock transaction that valued the company at $3.6 billion. Amedysis will pay Option Care a $106 million termination fee to forfeit the agreement.
Amedisys is UnitedHealth’s second home healthcare acquisition this year, as the company seeks to bolster its presence in the industry. It acquired LHC Group, a rival of Amedisys, for $5.4 billion in February.
Amedisys’ stock was down 0.7% midday Monday, trading at around $90. UnitedHealth’s stock was up about 0.7%.