UHG, through its health services unit Optum, has offered to pay $100 in cash per Amedisys share, which is a 26% premium to Amedisys’ recent closing share price and 29% to its unaffected share price of $77.26
UnitedHealth plans to acquire Amedisys. (Credit: StockSnap from Pixabay)
US-based managed healthcare and insurance company UnitedHealth Group (UHG) has submitted an unsolicited bid worth $3.26bn to acquire home healthcare service company Amedisys.
UHG, through its health services unit Optum, has offered to pay Amedisys shareholders $100 in cash for each share of Amedisys held.
The proposed transaction represents a 26% premium to Amedisys’ recent closing share price and 29% to its unaffected share price of $77.26.
Optum’s proposal is not contingent on financing and does not require shareholder approval.
Optum Care Solutions CEO Patrick Conway said: “Amedisys’ commitment to quality and care innovation within the home, and the patient-first culture of its people, combined with Optum’s deep value-based care expertise can drive meaningful improvement in the health outcomes and experiences of more patients at lower costs, leading to continued growth.”
The offer follows weeks after Amedisys’ agreement to merge with Option Care Health, a major provider of home and alternate site infusion services.
The proposed business combination deal valued Amedisys at around $3.6bn.
In connection with its proposed merger with Amedisys, Option Care Health filed a registration statement with the US Securities and Exchange Commission.
Amedisys would pay Option, a $106m if their agreement is terminated.
Option Care Health stated: “Option Care Health’s previously announced definitive merger agreement with Amedisys delivers significant value to Amedisys and Option Care Health stockholders.
“Our compelling all-stock transaction, expected to close in the second half of 2023, allows stockholders of both companies to participate in the upside of the combined company, which will be a differentiated leader in home health and alternate site care with unmatched scale and a unique cash flow profile.”
Optum said that thousands of organisations offer in-home care, but no single participant has more than a single-digit percentage share and is confident about approval for the merger.
The proposed acquisition would expand UHG’s presence in home healthcare, supported by Optum’s $5.4bn acquisition of LHC Group, a home health and hospice services provider, earlier this year.