Amedisys Inc. has terminated its merger with Option Care Health Inc. and has agreed to merge with UnitedHealth Group Inc. Under this deal with UnitedHealth, each Amedisys share will be converted into the right to receive $101 in cash, which represents a 10.7% premium to Friday’s closing price of $91.21.
In early-June, Amedisys disclosed that it had received a $100-a-share cash bid from UnitedHealth’s Optum. The company believed that this bid would be considered “superior” to Option Care Health’s all-stock bid. Aware of the potential of the deal, Amedisys chose to terminate its merger with Option Care Health, which will now receive a $106 million deal-termination fee.
Valuation and Details
Based on Amedisys’ 32.56 million outstanding shares as of April 28, the buyout bid values Amedisys at $3.29 billion. Following the closing of the deal, Amedisys will become a wholly-owned subsidiary of UnitedHealth.
In premarket trading, Amedisys shares gained 0.3%, UnitedHealth’s stock edged up 0.2%, and Option Care Health shares rallied 5.6%. On the contrary, futures ES00 for the S&P 500 slipped by 0.1%.
This merger marks a significant move for both companies in the healthcare sector.