Declared Friday UnitedHealth Group (NYSE:UNH) and Amedisys (NASDAQ:AMED) have waived off their rights to terminate theirmerger agreement, extending the timeframe for the $3.3 billion purchase into late 2025. The decision was revealed in a regulatory disclosure.
Originally agreed upon in June 2023, the deal calls for UnitedHealth to pay Amedisys $101 per share in cash. Originally scheduled for December 2024, the agreement has been delayed owing to legal difficulties including a lawsuit launched by the U.S. Department of Justice (DOJ) contesting the merger.
Under the waiver agreement, whichever comes firstDecember 31, 2025, or 10 business days following a final court decision on the DOJ lawsuitthe termination rights are suspended. Additionally, the agreement includes a $275 million regulatory break fee, which will rise to $375 million should specific pre-merger divestment targets fall short.
While UnitedHealth shares traded flat, Amedisys shares climbed approximately 4%in premarket trading after the announcement.
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