UnitedHealth to sell Change Healthcare’s claims business for $2.2 billion
(Reuters) -UnitedHealth Group has agreed to market Alter Healthcare’s claims editing business for $2.2 billion in a shift some analysts say could relieve regulatory hurdles in the way of an $8 billion merger among the healthcare providers.
Earlier this 12 months, the U.S. Office of Justice (DoJ) sued to quit the acquisition for providing UnitedHealth accessibility to competitors’ facts, forcing the businesses to extend the deal’s closing date by 9 months to Dec. 31.
The sale of the statements business enterprise, to personal fairness business TPG Cash, will only go by once UnitedHealth’s acquisition of Improve is entire, Transform mentioned in a regulatory submitting. https://www.sec.gov/ix?doc=/Archives/edgar/facts/1756497/000119312522116452/d574197d8k.htm
UnitedHealth and Transform give competing softwares for processing healthcare statements and with each other provide 38 of the best 40 health insurers in the country, the DoJ stated in its grievance in February.
Proudly owning Change’s promises organization, ClaimsXten, would offer UnitedHealth a window into rival health and fitness designs at Humana Inc, Anthem Inc
Citi analyst Daniel Grosslight said the sale of the statements enterprise will probably take away the DoJ’s argument in opposition to the merger, and perhaps maximize the probability of the deal going through.
“We do not imagine this will minimize the value of Modify to UnitedHealth as there is major overlap among ClaimsXten and Optum’s PI remedy,” Grosslight wrote in a observe.
Optum is UnitedHealth’s wellness expert services unit which will absorb Change if the acquisition is finished.
UnitedHealth, which has stated it would struggle the lawsuit, did not have any more feedback on the deal beyond the regulatory submitting.
Shares of Improve Healthcare were being up 1.03% at $23.8, when UnitedHealth fell about 1% to $515.70.
“It appears to be like the sector is betting that this transaction could grease the wheels of obtaining the deal done, contemplating the Adjust share motion today in a down current market,” Morningstar analyst Julie Utterback told Reuters.
(Reporting by Mrinalika Roy in Bengaluru Enhancing by Devika Syamnath)