Optum To Buy Alere Health In $600 Mln Cash Deal

(RTTNews) - Optum, an IT-enabled health services business of UnitedHealth Group (UNH) Tuesday said it has entered into a definitive agreement with consumer and professional medical diagnostic products maker Alere to acquire Alere Health and its subsidiaries in $600 million cash deal. Optum said the combination will broaden and strengthen the value it provides to health care payers, employers and states.

Alere health is a provider of condition management, case management, wellbeing, 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. Alere Health's offerings in areas such as tobacco cessation and home-based obstetrical services to Optum's expertise and health services.

Alere intends to use the proceeds from this transaction to reduce debt and to focus on its core area of strength in rapid diagnostics.

Covington Associates is serving as financial advisor and Foley Hoag LLP is serving as legal advisor to Alere.