Amedisys Sold to UnitedHealth for $3.3 Billion

Health Insurance titan UnitedHealth Group (UNH) has entered into a momentous all-cash transaction, acquiring Amedisys (AMED), a prominent provider of home health and hospice care, for a substantial sum of $3.3 billion. This strategic investment will significantly bolster UnitedHealth's presence and influence in the realm of home healthcare.

Key TakeAway

• UnitedHealth Group has entered into a definitive agreement to acquire Amedisys, a leading provider of in-home healthcare services, at a price of $101 per share.
• Amedisys will incur a termination fee of $106 million to conclude its merger with Option Care, which had previously proposed an all-stock acquisition of Amedisys at $97.38 per share in May.
• Following the necessary approvals from shareholders and regulatory authorities, Amedisys will merge with Optum, a subsidiary of UnitedHealth.

UnitedHealth will execute an all-cash transaction, pending approval from shareholders and regulatory entities, wherein they will compensate Amedisys at a rate of $101 for each outstanding share. Subsequently, Amedisys will merge with Optum, the subsidiary of UnitedHealth.

The negotiation process between the two corporations spanned several weeks. Initially, UnitedHealth proposed an acquisition of Amedisys at $100 per share on June 5.

Prior to this agreement, Amedisys had entered into a merger arrangement with Option Care Health Inc. (OPCH). Option Care had offered to procure Amedisys through an all-stock transaction, valuing the company at $3.6 billion, with each share priced at $97.38. Amedisys will compensate Option Care with a termination fee of $106 million to nullify the prior agreement.

As part of its strategic expansion in the industry, UnitedHealth has pursued its second home healthcare acquisition this year. In February, the company acquired LHC Group, a direct competitor of Amedisys, for a sum of $5.4 billion.

Amedisys' shares experienced a marginal decline of 0.7% during midday trading on Monday, reaching an approximate value of $90. In contrast, UnitedHealth witnessed a positive trend with its stock increasing by around 0.7%.