Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Option Care to buy homecare service provider Amedisys in $3.6 billion deal

Published 05/03/2023, 04:47 PM
Updated 05/03/2023, 05:55 PM
© Reuters.

(Reuters) -Homecare services provider Option Care Health (NASDAQ:OPCH) Inc said on Wednesday it is acquiring Amedisys (NASDAQ:AMED) Inc in an all-stock deal valued at $3.6 billion, including debt.

The deal will enable Option Care, an infusion service provider at home or alternate sites, to expand its services.

Option Care valued Amedisys at $97.38 per share, a nearly 26% premium over the stock's close on May 2. Its shares fell 16.9% to $27.25 while Amedisys rose 2.5% to $80.6 after the bell.

Amedisys is a healthcare-at-home firm that provides nursing facility at homes as well as hospice care at the end of life.

The combined company will have a national clinician workforce of more than 16,500 health care professionals and 674 sites across the United States.

It is also expected to benefit from combined patient data sets, enhancing opportunities to identify interventions and increase patient engagement.

The deal is expected to close in the second half of 2023. If terminated, Amedisys is liable to pay $106 million to Option Care.

After the deal closes, Option Care stockholders will own about 64.5% of the combined company and Amedisys stockholders the rest.

Option Care Chief Executive John Rademacher and Finance Chief Mike Shapiro will continue in their roles, while three directors from Amedisys will be accommodated in the 10-member board of the combined company.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.