Dive Brief:
- Amedisys received a $3.26 billion all-cash bid from UnitedHealth Group’s Optum, a month after the home and hospice care company agreed to be purchased by Option Care Health.
- Last week, Amedisys’ board determined that Optum’s bid could reasonably be expected to be “superior,” and the company is in exploratory talks with the UnitedHealth subsidiary. But Amedysis is currently still bound by the agreement with Option Care, which was set to close in the second half of 2023.
- Optum offered $100 per share, while Option Care’s all-stock deal valued the home care provider at $97.38 per share. Option Care has argued its deal with Amedisys still “delivers significant value,” adding the combined company could generate more than $9 billion in revenue by 2027 and more than $500 million in annual cash flow by 2025.
Dive Insight:
Amedisys’ stock price soared above $90 per share early Monday after the company announced Optum’s bid. Analysts with SVB Securities said key considerations for the home health company’s board include certainty of deal close and the Federal Trade Commission’s reaction to the purchase.
“UNH is a very sophisticated buyer which should provide some view into the buyer's perspective on the regulatory risk of closing a transaction,” analysts wrote.
The bid marks another potential home healthcare deal for UnitedHealth, which closed its $5.4 billion acquisition of LHC Group early this year. Optum already has an in-home assessment program.
In a statement, the healthcare giant, which owns the largest health insurer in the U.S., said it’s “confident” it can secure regulatory approval for the deal, as a number of organizations provide in-home care and demand for the services outstrip supply.
“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,” Patrick Conway, CEO of Optum Care Solutions, said in a statement.
