Neil de Crescenzo, president and CEO of Change Healthcare, will be OptumInsight's CEO when the deal closes.
UnitedHealth Group tech services subsidiary OptumInsight will acquire independent software and data analytics provider Change Healthcare in a deal valued at around $8 billion.
In a joint press release Wednesday, Eden Prairie, Minnesota-based UnitedHealth, and Nashville-based Change Healthcare said the combined company "will more effectively connect and simplify core clinical, administrative and payment processes - resulting in better health outcomes and experiences for everyone, at lower cost."
Neil de Crescenzo, president and CEO of Change Healthcare, will be OptumInsight's CEO when the deal closes.
"This opportunity is about advancing connectivity and accelerating innovations and efficiencies essential to a simpler, more intelligent and adaptive health system," de Crescenzo said.
Under the deal, UnitedHealth Group will buy Change Healthcare's common stock for $25.75 per share in cash and is expected to close in the second half of 2021, subject to Change Healthcare shareholders' and regulatory approval. UnitedHealth will also take on about $5 billion in debt owed by Change Healthcare.
Change Healthcare stock was trading at $24.03 at midmorning Wednesday, up 31%.
The Blackstone Group, which controls 20% of Change Healthcare's common stock, will vote in favor of the acquisition.
The combined company is the latest step in UnitedHealth's ongoing expansion into the health services sector.
"Together we will help streamline and inform the vital clinical, administrative and payment processes on which healthcare providers and payers depend to serve patients," said Andrew Witty, president of UnitedHealth Group and CEO of Optum.
“This opportunity is about advancing connectivity and accelerating innovations and efficiencies essential to a simpler, more intelligent and adaptive health system.”
Neil de Crescenzo, president / CEO, Change Healthcare
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
KEY TAKEAWAYS
UnitedHealth and Change Healthcare say the combined company "will more effectively connect and simplify core clinical, administrative and payment processes - resulting in better health outcomes and experiences for everyone, at lower cost."
Under the deal, UnitedHealth will buy Change Healthcare's common stock for $25.75 per share in cash and is expected to close in the second half of 2021, subject to Change Healthcare shareholders' and regulatory approval. UnitedHealth will also take on about $5 billion in debt owed by Change Healthcare.