The acquisition of home healthcare company LHC Group for $ 5.4 billion in cash was announced by unitedHealth Group on Tuesday, as the largest health care insurer in the US seeks to strengthen the home healthcare sector.
Under the agreement, the LHC Group will merge in-home healthcare services, mainly for the elderly with chronic illnesses or injuries, with UnitedHealth Optum Unit, which manages drug benefits and provides data analysis services for healthcare , as reported by Reuters.
Demand for home health care rather than hospital care has grown in the United States, especially during the coronavirus pandemic, as both patients and caregivers increasingly prefer access to vital home services.
UnitedHealth will pay $ 170 per share of LHC Group, a price 8.12% higher than the last close of the share.
UnitedHealth estimates that the agreement with the LHC will have a neutral impact on its adjusted profits for the year 2022, while it will strengthen them moderately next year.
LHC Group co-founders Keith and Ginder Meyers will invest $ 10 million in the health insurance stake after the deal closes.
The LHC Group traded up 7% at $ 168.45 during trading on Tuesday, while the UnitedHealth stock strengthened slightly by 0.9% to $ 517.50.
Source: Capital
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