Optum, United Health Group Inc’s health-services arm has announced it will acquire Alere Health and its subsidiaries for $600 million in cash, WSJ first reports. The acquisition will expand Optum’s population health management footprint of health management services to improve care delivery. The deal will become Optum’s third acquisition this year.
Alere Health provides case management and wellness services used by more than 200 regional and local health plans, 89 Fortune 500 companies, and 29 states. The company focuses on rapid diagnostics for infectious disease, cardiometabolic disease and toxicology. For Alere Inc., the sale will allow the company to pay off debt and focus more on its rapid diagnostics.
Alere reported a $98.6 million loss from continuing operations on revenue of $736.2 million in its third quarter. The acquisition is subject is regulatory approval and closing conditions.
