© Reuters. FILE PHOTO: The corporate logo of the UnitedHealth Group appears on the side of one of their office buildings in Santa Ana, California, U.S., April 13, 2020. REUTERS/Mike Blake
(Reuters) -UnitedHealth Group said on Tuesday it would buy LHC Group (NASDAQ:) for about $5.4 billion in cash, as the largest U.S. health insurer expands its home health services.
The deal will combine LHC Group with UnitedHealth (NYSE:)’s services unit Optum. UNH will pay about $170 for each share of LHC Group, representing an 8.12% premium to the stock’s last close.
Shares of LHC climbed 7.5% before the bell.
LHC Group, which employs more than 30,000 workers, provides healthcare services at home, mainly for older patients dealing with chronic illness and injuries.
Demand for home healthcare over clinic-based services has increased in the United States, especially after the COVID-19 outbreak.
UnitedHealth expects the deal to be neutral to its outlook for adjusted profit per share in 2022 and modestly add in 2023.
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