Optum to buy Amedisys in all-cash deal valued at over $3 billion
The agreement terminates a previous deal between Amedisys and Option.
Photo: Morsa/Getty Images
Optum is acquiring home health, hospice and acuity care provider Amedisys in an all-cash deal valued at an estimated $3.3 billion.
The agreement calls for the acquisition of Amedisys's outstanding common stock in an all-cash transaction for $101 per share, the company said by statement.
The agreement is subject to Amedisys shareholder approvals, regulatory approvals and other customary closing conditions.
Amedisys had previously entered into an acquisition deal with Option Care Health.
WHY THIS MATTERS: THE FINANCIALS
As previously disclosed with the U.S. Securities and Exchange Commission, on May 3, Amedisys entered into an Agreement and Plan of Merger with Option Care Health.
On Monday, June 26, Amedisys and Option entered into a termination agreement, effective upon receipt of a $106 million termination fee payable within 24 hours of the execution of the agreement.
The SEC filing also said that the Compensation Committee of the Board (the approved one-time equity award grants of time-based restricted stock units that vest ratably over three years to Amedisys CEO Richard Ashworth, with a $2.5 million grant date value, and to CFO Scott Ginn, with a $1.5 million grant date value, in each case, effective as of the date of entering into the merger agreement, in exchange for Ashworth and Ginn agreeing not to resign their employment with UnitedHealth Group for good reason due to a material diminution of their authority, responsibilities or duties during the six-month period following the effective time.
THE LARGER TREND
Option and Optum have presented offers to buy home health, hospice and high-acuity care provider Amedisys. Option's proposal was valued at $3.6 billion, while Optum offered an all-cash deal for $3.26 billion, representing a $100 per share cash transaction.
Optum submitted the unsolicited proposal on May 26 after Option and Amedisys entered into a merger agreement on May 3, according to Amedisys.
Twitter: @SusanJMorse
Email the writer: SMorse@himss.org
