Optum Outbids Option in Battle to Acquire Amedisys

Optum, UnitedHealth Group’s health care provider, beat Option to the punch in acquiring Amedisys, one of the largest home health companies, in an all-cash transaction valued around $3.3 billion.

In May, Option Care Health, an independent provider of home and alternate infusion services, announced it had entered into a definitive merger agreement with Amedisys to combine in an all-stock transaction. However, on May 26, Amedisys received an unsolicited proposal from Optum to acquire all of the outstanding shares of Amedisys’ common stock in an all-cash transaction for $100 per share. A month later, Optum and Amedisys agreed to combine for $101 per share.

“Amedisys’ commitment to quality and care innovation within the home, and the patient-first culture of its people, combined with Optum’s deep value-based care expertise can drive meaningful improvement in the health outcomes and experiences of more patients at lower costs, leading to continued growth,” said Patrick Conway, CEO of Optum Care Solutions. According to Amedisys, the agreement with Optum is still subject to shareholder and regulatory approvals as well as customary closing conditions. The deal is expected to close in 2024.

The move by Optum reflects big companies’ growing interest in the homecare market. Earlier in 2023, Optum finalized a deal to acquire LHC Group for $5.4 billion and CVS Health acquired home health care company Signify Health for $8 billion in March.

Following a mutual termination agreement between Option and Amedisys, Option will receive a $106 million termination fee. According to the company, it plans to incorporate the fee into its established capital allocation strategy.

“While we are disappointed in this outcome, Option Care Health has a long track record of delivering value for our shareholders,” said John C. Rademacher, president and CEO of Option Care Health. “We take a disciplined approach to acquisitions and, as we evaluated our options, we applied this discipline to ensure we continue to create value for all of our key stakeholders.”