Optum and Change Healthcare have agreed to extend their $5.4 billion merger agreement to Dec. 31. Change Healthcare and Optum in a news release said they will detail the benefits of this combination as defendants in a lawsuit brought by the Department of Justice. The two-week trial is set to begin Aug. 1.
“The U.S. Department of Justice’s attempt to block the combination is without merit and serves only to delay improving the experience and outcomes for all participants in the health system,” the two homecare health systems said in the news release.
The DOJ sued to block the merger in February, alleging that the combination would allow UnitedHealth to get a leg up on its competitors in the insurance space. The deal was first announced in January 2021 and is valued at $8 billion in cash and $5 billion in debt.
As part of the extension, Optum will pay a $650 million fee to Change Healthcare in the event the merger is unable to be completed because of the court’s decision. Read more.
