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Advisory Board finalizes $1.3B deal with UnitedHealth's Optum

Advisory Board shareholders have approved a deal to sell the company's healthcare division to Minnetonka, Minn.-based UnitedHealth Group's Optum arm for $1.3 billion.

Under the transaction, Optum will acquire Advisory Board and, as previously announced, Advisory Board will sell its education business to Vista Equity Partners for $1.55 billion prior to the closing of the deal with Optum.

"For more than 30 years, Advisory Board's strategic insights have been an important part of the national healthcare conversation, and we are thrilled to welcome them to Optum," said Larry Renfro, CEO of Optum. "Together, we will be able to offer deeper and more comprehensive solutions to help all segments of the health care industry thrive in this evolving market, while preserving the objectivity and credibility of Advisory Board's industry-leading research."

Advisory Board shareholders will net estimated cash per share of $53.81, which comprises a fixed payment of $52.65 per share and an additional amount in cash equal to $1.16 based on the per-share, after-tax value of the company's equity interests in Evolent Health.

More articles on healthcare transactions and valuations:

Houston Healthcare, Navicent explore potential partnership
UPMC children's hospital, West Virginia facility partner on newborn care
Trinity Health to merge 2 of its Michigan health systems

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