# UnitedHealth to sell Change Healthcare’s claims business for $2.2 billion
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-25
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: UnitedHealth Group to Sell Change Healthcare's Claims
Meta Description: UnitedHealth Group's sale of Change Healthcare's claims editing business could ease regulatory hurdles for an $8 billion merger, potentially
URL: https://financedigest.com/unitedhealth-to-sell-change-healthcares-claims-business-for-2-2-billionhtml

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(Reuters) -UnitedHealth Group has agreed to sell Change Healthcare’s claims editing business for $2.2 billion in a move some analysts say could ease regulatory hurdles in the way of an $8 billion merger between the healthcare companies.

Earlier this year, the U.S. Department of Justice (DoJ) sued to stop the acquisition for giving UnitedHealth access to competitors’ data, forcing the companies to extend the deal’s closing date by nine [months to Dec](https://www.financedigest.com/spanish-manufacturing-output-down-for-6th-straight-month-in-dec-pmi.html "Spanish manufacturing output down for 6th straight month in Dec -PMI"). 31.

The sale of the claims business, to [private equity](https://www.financedigest.com/procurementin-european-private-equity-investment-adding-value-to-the-boardroom.html "Procurement in European private equity investment – adding value to the boardroom.") firm TPG Capital, will only go through once UnitedHealth’s acquisition of Change is complete, Change said in a regulatory filing. https://www.sec.gov/ix?doc=/Archives/edgar/data/1756497/000119312522116452/d574197d8k.htm

[UnitedHealth and Change offer competing softwares for processing healthcare claims and together serve 38 of the top 40 health insurers](https://www.financedigest.com/are-there-tax-breaks-for-business-health-insurance.html "Are there tax breaks for business health insurance?") in the country, the DoJ said in its complaint in February.

Owning Change’s claims business, ClaimsXten, would [offer UnitedHealth a window into rival](https://www.financedigest.com/telecom-italia-boosted-by-rival-offer-for-landline-grid.html "Telecom Italia boosted by rival offer for landline grid") health plans at Humana Inc, Anthem Inc <ANTM.N, CVS Health Corp’s Aetna and Cigna Corp, the agency said.

Citi analyst Daniel Grosslight said the sale of the claims business will likely remove the DoJ’s argument against the merger, and potentially increase the probability of the deal going through.

We do not think this will reduce the value of Change to UnitedHealth as there is significant overlap between ClaimsXten and Optum’s PI [solution,” Grosslight wrote in a note](https://www.financedigest.com/the-patient-engagement-solutions-market-to-grow-on-a-satisfactory-note.html "The Patient Engagement Solutions Market to grow on a satisfactory note").

Optum is UnitedHealth’s health [services unit](https://www.financedigest.com/sacyr-shortlists-four-bidders-for-its-service-waste-management-unit-expansion.html "Sacyr shortlists four bidders for its service, waste management unit – Expansion") which will absorb Change if the acquisition is completed.

UnitedHealth, which has said it would fight the lawsuit, did not have any further comments on the deal beyond the regulatory filing.

[Shares of Change](https://www.financedigest.com/bayer-shares-gain-on-prospect-of-second-activist-pushing-for-change.html "Bayer shares gain on prospect of second activist pushing for change") Healthcare were up 1.03% at $23.8, while UnitedHealth fell about 1% to $515.70.

It looks like the market is betting that this transaction could grease the wheels of getting the deal done, [considering the Change](https://www.financedigest.com/1-in-10-workers-considering-a-career-change-in-the-next-year.html "1 in 10 workers considering a career change in the next year") share movement today in a down market,” Morningstar analyst Julie Utterback told Reuters.

[(Reporting by Mrinalika Roy](https://www.financedigest.com/lumen-releases-report-from-pwc-on-the-roi-of-attention-technology.html "Lumen Releases Report from PwC on the ROI of Attention Technology") in Bengaluru; Editing by Devika Syamnath)


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