Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
🙌 It's Here: the Only Stock Screener You'll Ever Need Get Started
UnitedHealth to sell Change Healthcare's claims business for $2.2 billion
Published Apr 25, 2022 09:52AM ET
Updated Apr 25, 2022 11:50AM ET
© Reuters. FILE PHOTO: UnitedHealth Group's headquarters building is seen in Minnetonka, Minnesota in this picture taken in 2019. UnitedHealth Group/via REUTERS
(Reuters) -UnitedHealth Group has agreed to sell Change Healthcare (NASDAQ:CHNG)'s claims editing business for $2.2 billion in a move some analysts say could ease regulatory hurdles in the way of an $8 billion merger between the healthcare companies.
Earlier this year, the U.S. Department of Justice (DoJ) sued to stop the acquisition for giving UnitedHealth (NYSE:UNH) access to competitors' data, forcing the companies to extend the deal's closing date by nine months to Dec. 31.
The sale of the claims business, to private equity firm TPG Capital, will only go through once UnitedHealth's acquisition of Change is complete, Change said in a regulatory filing. https://www.sec.gov/ix?doc=/Archives/edgar/data/1756497/000119312522116452/d574197d8k.htm
UnitedHealth and Change offer competing softwares for processing healthcare claims and together serve 38 of the top 40 health insurers in the country, the DoJ said in its complaint in February.
Owning Change's claims business, ClaimsXten, would offer UnitedHealth a window into rival health plans at Humana Inc (NYSE:HUM), Anthem Inc
Citi analyst Daniel Grosslight said the sale of the claims business will likely remove the DoJ's argument against the merger, and potentially increase the probability of the deal going through.
"We do not think this will reduce the value of Change to UnitedHealth as there is significant overlap between ClaimsXten and Optum's PI solution," Grosslight wrote in a note.
Optum is UnitedHealth's health services unit which will absorb Change if the acquisition is completed.
UnitedHealth, which has said it would fight the lawsuit, did not have any further comments on the deal beyond the regulatory filing.
Shares of Change Healthcare were up 1.03% at $23.8, while UnitedHealth fell about 1% to $515.70.
"It looks like the market is betting that this transaction could grease the wheels of getting the deal done, considering the Change share movement today in a down market," Morningstar analyst Julie Utterback told Reuters.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.