Optum acquiring Alere Health and its subsidiaries for $600 million

Optum acquiring Alere Health and its subsidiaries for $600 million

UnitedHealth Group’s Optum has entered into a definitive agreement to acquire Alere Health and its subsidiaries for $600 million in cash. The transaction is subject to customary regulatory approval and other closing conditions.

Alere Health provides condition management, case management, well-being, wellness and women’s and children’s health services to more than 200 health plans, 89 Fortune 500 employers and 29 states. Overall, the company’s services are offered to more than 22 million people across the U.S.

Alere Health’s health management capabilities will broaden and strengthen the value Optum provides to healthcare payers, employers and states by improving the health of the people they serve, and reducing overall healthcare costs. Adding Alere Health’s leading offerings in areas such as tobacco cessation and home-based obstetrical services to Optum’s broad scope of expertise and health services will enable delivery of more comprehensive population health management solutions for clients of both organizations.

The deal also enables Alere to sharpen its strategic focus on enhancing leadership in the global rapid diagnostics market.“Adding Alere Health’s solutions and expertise allow us to be an even more valuable partner to payers, employers, federal and state governments and consumers in achieving their long-term population health and cost management goals,” said Larry Renfro, Optum CEO.

Alere’s President and CEO Namal Nawana is also pleased with the deal. He said that the transaction will allow Alere to “focus on its strengths as the global leader in rapid diagnostics,” where it has leading assets and operations in growing markets. Alere will also use the proceeds to reduce debt.

Covington Associates is serving as financial advisor and Foley Hoag LLP is serving as legal advisor to Alere.