Optum, Alere Health to Combine to Help Health Plans, Employers and States Improve Population Health
Optum and Alere today announced that Optum has entered into a definitive agreement to acquire Alere Health and its subsidiaries, which provide leading condition management, case management, wellbeing, wellness and women’s and children’s health services to more than 200 regional and local health plans, 89 Fortune 500 employers and 29 states. Alere Health’s services are offered to more than 22 million people across the U.S.
The $600 million cash transaction is subject to customary regulatory approval and other closing conditions. Such conditions for Alere include consent of the required lenders under Alere’s senior secured credit facility. The transaction does not require the approval of Alere’s shareholders.
Alere Health’s health management capabilities will broaden and strengthen the value Optum provides to health care payers, employers and states by improving the health of the people they serve and reducing overall health care 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 innovative and comprehensive population health management solutions for clients of both organizations.
“Alere Health’s expert team and proven health management solutions are a strong fit with our focus on empowering consumers to make more informed decisions, achieve healthier lifestyles and take greater ownership of their health,” said Larry Renfro, chief executive officer, Optum. “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.”
The sale of Alere Health is an important step in Alere’s execution of its strategy to focus on its core area of strength in rapid diagnostics and improve its balance sheet. Alere intends to use the proceeds from this transaction to reduce debt.
“Combining Alere Health and Optum allows our clients to continue to receive the leading health management solutions they need today and receive even greater value in the future. It allows Alere to focus on its strengths as the global leader in rapid diagnostics, where we have leading assets and operate in growing markets,” said Namal Nawana, president and CEO, Alere.
Covington Associates is serving as financial advisor and Foley Hoag LLP is serving as legal advisor to Alere.
Optum is a leading information and technology-enabled health services business dedicated to helping make the health system work better for everyone. With approximately 80,000 people worldwide, Optum delivers intelligent, integrated solutions that help to modernize the health system and improve overall population health. Optum is part of UnitedHealth Group (NYSE:UNH).
Because Knowing now matters™, Alere delivers reliable and actionable information through rapid diagnostic tests, resulting in better clinical and economic healthcare outcomes globally. Headquartered in Waltham, Mass., Alere focuses on rapid diagnostics for infectious disease, cardiometabolic disease and toxicology. For more information on Alere, please visit www.alere.com.