UnitedHealth Group Might Buy Half of Advisory Board

It’s all according to sources who wish to remain anonymous, but Bloomberg is reporting that UnitedHealth Group and Vista Equity Partners are nearing a deal where they will split up the Advisory Board.

“UnitedHealth would acquire Advisory Board’s health-care division and Vista would buy its education business, said the people, who asked not to be named because discussions are private,” Bloomberg reports.

The Advisory Board focuses on how to use best practices to improve health care, through research and technology. Many health care organizations and publications tap the company’s expertise including Managed Care. Zachary Hafner, leads the Advisory Board’s strategy consulting practice, and is a columnist who contributes regularly to Managed Care. Check out some of his work here.

The stock market certainly liked what it was hearing regarding the possible United-Vista deal as Advisory Board shares jumped 14% yesterday. That’s the highest level they’d been in two years. “The stock was up 4.8 percent at $54.75 as of 3:51 p.m. in New York, giving the company a market value of $2.2 billion,” Bloomberg reports.

It’s a complicated deal and any official announcement might not be made for at least another month, if the deal even comes off. United, Vista, and the Advisory Board all declined to comment to Bloomberg. The deal seems to make sense for United, though.

“UnitedHealth, the biggest U.S. health insurer, has a sprawling technology, consulting and health-care delivery operation known as Optum,” Bloomberg reports. “The company’s consulting unit focuses on aiding leaders of hospitals and insurers, implementing new technologies and advising health plans on how to design products and set rates.”

Source: Bloomberg