May 29, 2022

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UnitedHealth to buy LHC Group for $5.4 billion in home healthcare push


The UnitedHealth Team places of work in Santa Ana, California, U.S. REUTERS/Mike Blake

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March 29 (Reuters) – UnitedHealth Team (UNH.N) mentioned on Tuesday it would buy LHC Group (LHCG.O) for about $5.4 billion in hard cash, as the major U.S. health insurance company expands its property wellbeing expert services.

The offer will combine the service provider of healthcare providers at household, mostly for more mature people dealing with long-term sickness and injuries, with UnitedHealth’s Optum device, which manages drug rewards and offers healthcare information analytics providers.

Need for property healthcare above clinic-based mostly products and services has increased in the United States, particularly in the course of the COVID-19 pandemic as individuals and caregivers significantly like to entry vital services from the security of their residences.

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The offer arrives a month soon after the U.S. Justice Division sued to quit UnitedHealth’s $8 billion acquisition of billing and payment providers company Transform Healthcare (CHNG.O), declaring the deal would give the health and fitness insurance provider accessibility to its competitors’ details. study far more

UnitedHealth will fork out $170 for each and every share of LHC Group, symbolizing an 8.12% high quality to the stock’s last close.

Shares of LHC climbed 7.5% and had been trading just shy of the provide at $168.70 before the opening bell, when those of UNH rose marginally.

UnitedHealth expects the LHC deal to be neutral to its outlook for adjusted gain for each share in 2022 and modestly incorporate in 2023. LHC Group co-founders Keith and Ginger Myers will spend $10 million in the health insurer’s stock, adhering to the close of the offer.

Past 12 months, overall health insurance company Humana (HUM.N) obtained the remaining 60% stake it did not possess in home health and fitness company Kindred at Home for $5.7 billion to extend its affected person treatment business enterprise. examine more

SVB Leerink and Jefferies LLC served as money advisers to LHC Team.

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Reporting by Mrinalika Roy and Bhanvi Satija in Bengaluru Modifying by Arun Koyyur, Sriraj Kalluvila and Saumyadeb Chakrabarty

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