Change Healthcare reportedly seeking ‘sizable’ breakup fee if UnitedHealth deal falls through
Change Healthcare is reportedly seeking a “sizable” breakup fee if its proposed acquisition by UnitedHealth Group falls through, according to a report published Tuesday.
Members of the Nashville, Tennessee, imaging vendor’s board have recently discussed such a “reverse fee,” which was not part of its original M&A deal with UHG. Those involved have eyed an amount north of 5%, Dealreporter claimed. The original agreement had UnitedHealth paying a purchase price of $8 billion, meaning Change could collect hundreds of millions if board members get their way.
The Department of Justice sued to stop the blockbuster merger deal in February, claiming it could undermine competition for health insurance and stifle innovation. Minnetonka, Minnesota-based UnitedHealth—which owns the largest health plan in the U.S.—on the other side said it plans to “vigorously” defend the deal in court.
April 5 is the reported walk date for the transaction. The Department of Justice trial is slated to begin on Aug. 1 and will last 12 days, according to a recent court filing.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.