UnitedHealth (UNH), Amedisys Clear Merger Hurdle With Asset Sale

Merger Details - UnitedHealth Group Incorporated (UNH) is set to close its $3.3 billion merger with Amedisys, Inc. (AMED) in the second half of 2024, with Amedisys becoming a wholly-owned subsidiary of UnitedHealth [1] - Both companies are divesting certain care centers to VitalCaring Group's affiliate VCG Luna to satisfy federal antitrust regulators, aiming to streamline the merger process and maintain compliance with regulatory requirements [1] Financial Aspects - Further financial details regarding the merger are yet to be disclosed, but Optum, a business unit of UnitedHealth, submitted a full-cash proposal to combine with Amedisys in June 2023 [2] - Optum's expertise in value-based care is expected to drive better health outcomes at lower costs, improving patient care continuity [2] - The Optum business is crucial for UnitedHealth's diversification strategy, contributing more than 24% of UNH's revenues in 2023 [2] Market Performance - UnitedHealth shares have gained 6.6% in the past year, outperforming the industry's growth of 5.3% [4] Investment Insights - UnitedHealth currently holds a Zacks Rank 3 (Hold) [5] - Investors may consider other better-ranked players in the medical space, such as Elevance Health, Inc. (ELV) and Aura Biosciences, Inc. (AURA), both carrying a Zacks Rank 2 (Buy) [6]