Wired News – DaVita Sells DaVita Medical Group to UnitedHealth Group’s Optum
Stock Monitor: DaVita Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 08, 2017 / Active-Investors issued a free report on UnitedHealth Group Inc. (NYSE: UNH), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=UNH as the Company's latest news hit the wire. On December 06, 2017, the Company announced that its health-services arm, Optum, has signed an agreement to acquire DaVita Medical Group, a unit of DaVita Inc. (NYSE: DVA), for approximately $4.9 billion in cash. Sign up now for our free research reports at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, UnitedHealth most recent news is on our radar and we have decided to include it on our blog post. Today's free reports on UNH and DVA are available at:
www.active-investors.com/registration-sg/?symbol=UNH
www.active-investors.com/registration-sg/?symbol=DVA
Acquisition Details
Following the acquisition, DaVita Medical Group will join Optum's OptumCare division, a physician-led primary, specialty, in-home, urgent, and surgery-care delivery services business which works with more than 80 health plans through 30,000 affiliated physicians and hundreds of care facilities.
Joe Mello, Chief Operating Officer (COO) of DaVita Medical Group, will continue in a leadership role in the combined entity, as will the rest of the DaVita leadership team.
DaVita plans to use the proceeds from the transaction for stock repurchases, debt repayment, and for general corporate purposes.
The transaction, likely to close in 2018, is subject to regulatory approvals and other customary closing conditions.
Strategic Benefits of the Transaction
The combination is likely to improve care quality, cost, and patient satisfaction through integrated ambulatory care delivery systems enabled by information technology and supportive clinical services. Optum's data, analytics, technologies, and clinical expertise will help DaVita Medical Group's physicians deliver higher quality care more effectively to patients.
DaVita Medical Group operates nearly 300 medical clinics, 35 urgent-care centers, and 6 outpatient surgery centers in Florida, California, Colorado, Washington, Nevada, and New Mexico. The transaction will expand the market reach of Optum's strategic care delivery portfolio, including Surgical Care Affiliates, MedExpress, and HouseCalls.
Combination Expected to Lead to Higher Levels of Performance
Kent Thiry, Chairman and Chief Executive Officer (CEO) of DaVita, stated that the combination of DaVita Medical Group and Optum would lead to even higher levels of performance. Following this transaction, DaVita will continue to be a leader in population health management, with a focus on its US and international kidney care businesses. Thiry added that DaVita also expects to pursue other investments in health care services outside of kidney care.
UnitedHealth Group's First Major Acquisition in 2017
On January 09, 2017, Optum entered into a deal to acquire Surgical Care Affiliates, Inc. ("SCA"), a leading ambulatory surgery center and surgical hospital provider, for approximately $2.3 billion. The combination of SCA with OptumCare helped the Company to position the combined organization as a comprehensive provider of ambulatory care service while continuing expansion of SCA's network of ASCs and surgical hospitals in partnership with leading health systems, medical groups, and health payers.
Another Major Deal in Healthcare Industry
In a similar move, on December 03, 2017, pharmacy giant, CVS Health, announced the execution of a definitive merger agreement to acquire Aetna, one of the nation's leading diversified health care benefits companies, for approximately $69 billion. The purpose is to create a vertically integrated benefits and health-care system that would be anchored around CVS Health's in-store clinics and pharmacies.
About UnitedHealth Group and Optum
UnitedHealth Group is a diversified health and well-being Company offering a broad spectrum of products and services through two distinct platforms, namely UnitedHealthcare and Optum.
Optum is a leading information and technology-enabled health services business. It delivers intelligent, integrated solutions that help to modernize the health system and improve overall population health. Optum also manages drug benefits and offers data analytics services to industry clients.
Stock Performance Snapshot
December 07, 2017 - At Thursday's closing bell, UnitedHealth's stock marginally rose 0.10%, ending the trading session at $220.15.
Volume traded for the day: 2.66 million shares.
Stock performance in the last month – up 3.50%; previous three-month period – up 11.33%; past twelve-month period – up 38.11%; and year-to-date - up 37.56%
After yesterday's close, UnitedHealth's market cap was at $213.11 billion.
Price to Earnings (P/E) ratio was at 25.02.
The stock has a dividend yield of 1.36%.
The stock is part of the Healthcare sector, categorized under the Health Care Plans industry. This sector was up 0.3% at the end of the session.
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