UnitedHealth seeks extension for $3.3B Amedisys acquisition
Deal News | Dec 27, 2024 | EIN
UnitedHealth Group is seeking more time to complete a $3.3 billion acquisition of Amedisys, a home health care and hospice company, after both companies decided to waive certain deadlines amid antitrust concerns. The U.S. Department of Justice, along with several states, has filed a lawsuit to block the deal, citing that it would give UnitedHealth an undue advantage in the market. This acquisition would make UnitedHealth a significant player in the home health sector as it already acquired LHC Group for $5.4 billion in 2022. The merger is claimed to potentially stifle competition, but UnitedHealth argues that it would only manage a portion of the care centers nationwide. SEC filings reveal waived deadlines designed to allow 10 days after a court ruling or until the end of 2025. This development adds complexity to the landscape of American healthcare management and competition.
Sectors
- Healthcare
- Mergers and Acquisitions
- Legal
Geography
- United States – The companies involved, UnitedHealth Group and Amedisys, are both based in the U.S. and the legal actions are taken by the U.S. Department of Justice.
Industry
- Healthcare – The article focuses on UnitedHealth Group's acquisition of Amedisys, both of which operate within the healthcare sector, particularly in home health and hospice services.
- Mergers and Acquisitions – The article details a significant M&A activity involving UnitedHealth Group's proposed $3.3 billion purchase of Amedisys.
- Legal – The article involves antitrust legal action by the U.S. Department of Justice to block the acquisition of Amedisys by UnitedHealth Group.
Financials
- $3.3 billion – The value of UnitedHealth Group's proposed acquisition of Amedisys.
- $5.4 billion – The amount UnitedHealth Group previously paid to acquire LHC Group in 2022.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| UnitedHealth Group | Bidding Company | Companies | A healthcare conglomerate and bidder for Amedisys. |
| Amedisys | Target Company | Companies | A home health care and hospice company targeted for acquisition by UnitedHealth Group. |
| U.S. Department of Justice | Government | Government | Filed a lawsuit to block the merger due to antitrust concerns. |
| Securities and Exchange Commission | Other | Government | Regulatory body with which the waiver of deadlines was filed. |
| LHC Group | Other Company | Companies | Previously acquired by UnitedHealth Group for $5.4 billion in 2022. |