UnitedHealth Group-owned Optum will acquire Change Healthcare and combine it with its OptumInsight software and analytics business, the companies announced this morning.
Change Healthcare President and CEO Neal de Crescenzo will serve as CEO of OptumInsight.
The acquisition price is $25.75 in cash, a 40% premium over Tuesday’s closing price of Change Healthcare shares. That represents $8 billion plus the assumption of $5 billion in Change Healthcare debt.
OptumInsight generates about $9 billion per year in annual revenue of UnitedHealth Group’s $225 billion, but is its highest-margin segment at around 20%. Change Healthcare’s annual revenue is $3 billion.