UnitedHealth Group and Amedisys Extend Merger Deadline
UnitedHealth Group and home health provider Amedisys have decided to extend their merger deadline, as announced in a recent filing with the Securities and Exchange Commission. The two parties have mutually agreed to waive their right to terminate the $3.3 billion merger agreement in the event that the deal is not completed by the originally agreed upon deadline.
The decision to extend the merger deadline could potentially delay the completion of the deal until December 2025. Originally, the acquisition was expected to close this month. However, the Department of Justice intervened and filed a lawsuit in November to block the merger, citing concerns about potential anti-competitive practices.
In light of these developments, UnitedHealth Group and Amedisys have entered into a new waiver agreement. This agreement extends the merger deadline to 10 days after a final court decision is made, or until December 31, 2025, whichever comes first. Additionally, the waiver includes a regulatory break fee of $275 million, which could increase to $325 million if certain timing milestones related to asset divestiture are not met in order to secure approval.
The planned merger between UnitedHealth Group and Amedisys was initially announced in June 2023, with the agreement valuing the deal at $3.3 billion. Under the terms of the merger, Amedisys would become a wholly-owned subsidiary of UnitedHealth Group.
Both UnitedHealth and Amedisys are significant players in the home health and hospice provider industry, as highlighted in the DOJ lawsuit filed in federal court in Maryland. The plaintiffs in the lawsuit include the states of Maryland, Illinois, New Jersey, and New York.
The extension of the merger deadline underscores the complexities involved in large-scale mergers and acquisitions within the healthcare industry. As the two companies navigate regulatory challenges and seek to address concerns raised by the Department of Justice, the future of the merger remains uncertain.
For more information, please contact the writer at SMorse@himss.org.
