Change Healthcare and Optum extend merger agreement

EDEN PRAIRIE, Minn. and NASHVILLE, Tenn. (April 5, 2022) — Optum, a diversified health services company, and Change Healthcare (NASDAQ: CHNG), a healthcare technology leader, have agreed to extend their merger agreement to December 31, 2022.

In a joint statement, the companies said: "The extended agreement reflects our firm belief in the potential of our combination to improve healthcare, and in our commitment to contesting the meritless legal challenge to this merger."

Change Healthcare and Optum share a vision for achieving a simpler, more intelligent and adaptive health system for patients, payers and providers. The Optum and Change Healthcare merger will connect and simplify the core clinical, administrative and payment processes healthcare providers and payers depend on to serve patients. Increasing efficiency and reducing friction will benefit the entire health system, resulting in lower costs and a better experience for all stakeholders.

Change Healthcare and Optum will detail the benefits of this combination at a two-week trial scheduled to begin on August 1. The U.S. Department of Justice's attempt to block the combination is without merit and serves only to delay improving the experience and outcomes for all participants in the health system.

As part of the extension, Optum will pay a $650 million fee to Change Healthcare in the event the merger is unable to be completed because of the court's decision. Change Healthcare will pay a special cash dividend of $2.00 per share to its shareholders at or about the time of the closing.