Optum, a business unit of managed care behemoth UnitedHealth Group, recently reached an agreement with Alere Inc, Waltham, Mass, to acquire Alere Health, whose healthcare services are offered to more than 22 million people across the United States.
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 the transaction to reduce debt.
According to Optum, acquiring Alere Health’s health management capabilities will broaden and strengthen the value that the company provides to healthcare payers, employers, and states. Alere Health and its subsidiaries provide condition management, case management, well-being, 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.
Adding Alere Health’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.
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 employees worldwide, Optum delivers intelligent, integrated solutions that help to modernize the health system and improve overall population health.
“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,” says Larry Renfro, Optum CEO. “Adding Alere Health’s solutions and expertise allows 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.”
“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,” says Namal Nawana, Alere president and CEO. “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.”
Alere delivers reliable and actionable information through rapid diagnostic tests, resulting in better clinical and economic healthcare outcomes globally. The company focuses on rapid diagnostics for infectious disease, cardiometabolic disease, and toxicology.
The $600 million cash transaction is subject to customary regulatory approval and other closing conditions. For Alere, such conditions include consent of the required lenders under Alere’s senior secured credit facility. The transaction does not require the approval of Alere’s shareholders. Covington Associates is serving as financial advisor and Foley Hoag LLP is serving as legal advisor to Alere. For more information, visit Alere.
