M&A · Tech · Services-Computer Processing & Data Preparation
UnitedHealth Group Inc to acquire Change Healthcare Inc.
Announced Jan 6, 2021 · Closed Jun 29, 2022
Deal value$7.84BEV $12.79B
Premium41.2%To unaffected price
EV / Adj. EBITDA—
ConsiderationAll cash$25.75 per share
Transaction
- Acquirer
- UnitedHealth Group Inc (UNH)
- Target
- Change Healthcare Inc.
- Buyer type
- Strategic
- Offer price per share
- $25.75
- Enterprise value
- $12.79B
- Status
- Closed Jun 29, 2022
Deal protections
- Break fee (target pays)
- $300M · 3.8%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Not disclosed
- To the target
- Goldman Sachs
Sector context · Tech
- Comparable deals
- 13 in the prior 24 months
- Premium
- 41.2% vs. 26.4% sector median
- EV / Adj. EBITDA
- Sector median 18.6x
- Break fee
- 3.8% vs. 2.9% sector median
Timeline
- AnnouncedJan 6, 2021
- Proxy filedFeb 11, 2021
- Definitive proxyMar 5, 2021
- Shareholder voteApr 13, 2021
- ClosedJun 29, 2022
Valuation · fairness opinions
Discounted cash flow$20.72$32.55
Future share price$16.84$27.35
Precedent transactions$12.50$34.13
Premiums paid$21.89$31.01
Offer $25.75
Implied value per Change Healthcare Inc. share by analysis, from Goldman Sachs · DCF discount rate 6.75%–7.75%.