UnitedHealth to Buy Nashville Health Tech Firm for $8B

UnitedHealth to Buy Nashville Health Tech Firm for $8B

Including debt, the total deal is valued at $13 billion.

Minnetonka-based UnitedHealth Group on Wednesday outlined a multi-billion dollar deal to purchase a Nashville health care technology company.

According to a news release issued Wednesday, the Minnetonka health care giant will combine its OptumInsights division — the company’s software and data analytics division — with Nashville-based Change Healthcare. Under the agreement, UnitedHealth will pay $25.75 for each share of Change Healthcare.

Change Healthcare counts just over 317 million outstanding shares, which brings the total purchase price to about $8 billion. Including Change’s debt, the deal comes to $13 billion.

Though UnitedHealth Group has made at least two other multi-billion dollar acquisitions in recent years, the Change Healthcare buy may be the largest. In 2019, UnitedHealth Group purchased DaVita Medical Group for $4.3 billion. In the same year, the company closed on a $3.2 billion deal to buy Equian.

In the release, UnitedHealth Group President Andrew Witty said the deal would “help streamline and inform the vital clinical, administrative, and payment processes on which health care providers and payers depend to serve patients.”

If approved by regulators and Change Healthcare’s shareholders, the transaction is slated to wrap up in 2021’s second half.