Change Healthcare

History

2021: Optum purchased Change Healthcare

At the beginning of January, 2021 it was announced sale of Change Healthcare of UnitedHealth Group subsidiary company - Optum. The cost of the transaction was $13 billion. The united company after closing of the transaction will focus on software development, tools for data analysis and different services to clients from health sector.

It is known that UnitedHealth will pay $25.75 for an action cash that is 41% more, than Change Healthcare closing price for January 5 ($18.24). Taking into account that the debt of Change Healthcare exceeds $5 billion, transaction amount is about $13 billion.

Optum purchased Change Healthcare

It will become one of the largest acquisitions of UnitedHealth which intends to expand considerably the business in the field of medical services using division of Optum. UnitedHealth and Change Healthcare companies stated that the transaction will help them to simplify providing medical services, to raise customer satisfaction and to reduce costs.

The CEO of Change Healthcare Neil de Crescenzo will head the joint business division as the CEO of OptumInsight. At the same time, however, OptumInsight is the smallest business unit on revenue within Optum company. Income of division in three months which ended on September 30, 2020 was about $2.8 billion. Revenue of Change Healthcare for the same period made $765 million.

It is expected that the transaction will be closed in the second half of 2021. The private equity funds affiliated with Blackstone Group which possess about 20% of the stocks Change Healthcare, agreed to vote for the transaction. It is expected that by 2022 the adjusted earnings of UnitedHealth on an action will increase by $0.50.^[1]

2019: Statement for plans of an exit not the Nasdaq exchange

At the end of June, 2019 it was officially announced plans of an exit of Change Healthcare for the Nasdaq exchange under a ticker of CHNG.

2016: McKesson transfers JV IT-Business with Change Healthcare

At the end of June, 2016 it became known of plans of McKesson for department of the business in the field of IT medicine in the joint venture (JV) with software developer and network solutions for Change Healthcare Holdings medical institutions. The new company is going to be brought to the exchange.

Under the terms of the agreement, in the joint company almost all assets of IT department of McKesson Technology Solutions except for business in the field of corporate IT services and department of RelayHealth Pharmacy which is engaged in development of "smart" network of the solutions providing interaction of patients, hospitals, pharmaceutical companies and financial institutions will be transferred. McKesson also began to consider strategic options concerning further business development in the field of rendering IT services to hospitals.

One of the pharmaceutical companies, largest in the USA, separates IT-Business

The joint venture for 70% will belong to McKesson, and the rest — to shareholders of Change Healthcare Holdings. Annual revenues of the new company are stated in $3.4 billion. It is going to close the transaction in the first half of 2017.

Several months later after accomplishment of all formalities concerning consolidation of assets McKesson and Change Healthcare, the new company will be brought to the exchange. It will be headed by the CEO of Change Healthcare Neil de Crescenzo. Future McKesson intends to display the investments from this company.

In June, 2016 the Reuters agency with reference to the informed sources reported that McKesson considers the possibility of department of the IT department, including through sale and the conclusion of the transaction on consolidation of assets.^[2]