UnitedHealth Group Inc. has agreed to buy LHC Group Inc. for about $5.4 billion in cash, in the latest tie-up linking a managed-care company to the home-health business, The Wall Street Journal reports.
The acquisition by UnitedHealth’s Optum health-services arm, which is expected to be announced today, will add one of the country’s largest home-health firms to a portfolio that already includes doctor groups, clinics and surgery centers, as well as some home-based services.
“LHC Group’s sophisticated care coordination capabilities and its warm, human touch is so important for home care, and will greatly enhance the reach of Optum’s value-based capabilities along the full continuum of care, including primary care, home and community care, virtual care, behavioral health and ambulatory surgery,” Optum CEO Wyatt Decker said.
LHC’s stock popped 5% premarket prior to a trading halt for news, while UnitedHealth shares were little changed.
Terms of the deal call for Optum to pay about $170 for each LHC share outstanding, an 8.1% premium to the last closing price of $157.23.
The deal is expected to close in the second half of 2022.
The announcement comes less than a week after news that UnitedHealth Group health services division Optum acquired Jacksonville Beach-based mental health provider Refresh Mental Health. New York City-based private equity firm Kelso & Co. sold the business to Optum. Read more.
