Nashville, Tenn.-based data analytics firm Change Healthcare will combine with UnitedHealth Group subsidiary Optum in a deal amounting to about $13 billion, Bloomberg reports.
Five details:
1. The acquisition will merge Change Healthcare with Optum to offer software, data analytics and other services to healthcare clients.
2. UnitedHealth will pay $25.75 per share in cash, a 41 percent premium over Change Healthcare's closing price Jan. 5 of $18.24. With Change Healthcare's more than $5 billion in debt, the deal amounts to $13 billion.
3. Change Healthcare CEO Neil de Crescenzo will lead the combined business unit as CEO of OptumInsight, the companies said Jan. 6.
4. OptumInsight is the smallest business unit by revenue under Optum; the division accounted for about $2.8 billion in revenue in the three months ending Sept. 30, 2020, according to the news release. In the same period, Change Healthcare reported $765 million in revenue.
5. The deal is expected to close in the second half of 2021.