A PYMNTS Company

UnitedHealth To Buy Change Healthcare For $13B

By  |  January 6, 2021

UnitedHealth Group agreed to buy Change Healthcare in a deal that values the health technology company at more than US$13 billion, reported Bloomberg.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    UnitedHealth will pay US$25.75 a share in cash, the companies announced in a joint statement, a 41% premium over Change Healthcare’s closing price Tuesday, January 5, of US$18.24. The US$13 billion valuation includes more than US$5 billion in debt owed by Change Healthcare.

    The deal will combine Change Healthcare with UnitedHealth’s OptumInsight unit to offer software, data analytics, technology, and other services to the healthcare industry, the companies stated, adding that the combination will help simplify services around medical care to improve health outcomes and lower costs.

    “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 Group and CEO of Optum, said in a statement.

    The deal is expected to close in the second half of 2021. Private-equity funds affiliated with Blackstone Group that own about 20% of Change Healthcare’s common stock have agreed to vote in favor of the deal, which is expected to boost UnitedHealth’s adjusted per-share earnings by 50 cents in 2022, the companies stated.

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.