UnitedHealth Extends $3.3 Bn Amedisys Merger Deadline Amid DOJ Opposition

The merger, initially announced in June 2023, involves UnitedHealth’s Optum unit acquiring Amedisys for $100 per share in cash, representing a 26% premium over Amedisys’ stock price at the time.

UnitedHealth Group and Amedisys have extended the deadline for their $3.3 billion merger to December 31, 2025, as antitrust challenges from the Department of Justice (DOJ) and four state Attorneys General persist.

The merger, initially announced in June 2023, involves UnitedHealth’s Optum unit acquiring Amedisys for $100 per share in cash, representing a 26% premium over Amedisys’ stock price at the time.

The DOJ and the Attorneys General of New York, New Jersey, Maryland, and Illinois have filed an antitrust lawsuit opposing the acquisition.

The lawsuit, under review by the US District Court for the District of Maryland, alleges that the deal could stifle competition in the home health and hospice care sector.

In response to the legal opposition, UnitedHealth has proposed divesting specific facilities to VitalCaring Group to address antitrust concerns. However, the DOJ remains unconvinced, maintaining that the acquisition poses significant risks to market competition.

Revised Merger Timeline

UnitedHealth and Amedisys announced an agreement in a recent Securities and Exchange Commission (SEC) filing to waive their rights to terminate the merger due to delays.

Previously, the companies set the deadline as the tenth business day following a final DOJ ruling or December 31, 2024. The deadline has now been extended to December 31, 2025.

"The decision to extend the merger deadline reflects our commitment to addressing regulatory concerns and completing this transaction within the revised timeline," UnitedHealth stated in its filing.

While the legal proceedings continue, the healthcare sector closely monitors the case for its broader implications on mergers and acquisitions, particularly in the home healthcare domain.