UnitedHealth Group, Amedisys extend $3.3 billion merger agreement
The acquisition was originally expected to close this month, but in November the DOJ sued to block the merger.
Photo: Courtesy UnitedHealth Group
UnitedHealth Group and home health provider Amedisys have mutually agreed to extend their merger deadline, according to a regularly filing with the Securities and Exchange Commission.
On December 26, each party agreed to waive its right to terminate the $3.3 merger agreement due to failure to get the deal done by the agreed upon deadline.
WHY THIS MATTERS
The decision could delay the deal until December 2025.
The acquisition was originally expected to close this month, but the Department of Justice sued to block the merger in November, citing anticompetitive concerns.
The companies have entered into a new waiver agreement, which extends the merger deadline to 10 days after a final court decision, or December 31, 2025, whichever is earlier, according to the filing.
The waiver also contains a regulatory break fee of $275 million, which could escalate to $325 million if certain timing milestones are not met related to divesting assets to gain approval.
THE LARGER TREND
In June 2023, the two companies agreed to the $3.3 billion planned merger, with Amedisys becoming a wholly-owned subsidiary of UnitedHealth Group.
UnitedHealth and Amedisys are two of the largest home health and hospice providers in the country, according to the DOJ lawsuit filed in federal court in Maryland. Plaintiffs also include the states of Maryland, Illinois, New Jersey and New York.
Email the writer: SMorse@himss.org
