- The Advisory Board Company has announced the sale of its population health, data analytics, and healthcare consulting services to Optum, the UnitedHealth Group’s health technology services division.
The sale forms half of a two-part, $2.58 billion transaction, which also includes the handover of The Advisory Board’s education business division to Vista Equity Partners.
The healthcare services transaction is valued at $1.3 billion, and includes the Advisory Board’s 7.6 percent stake in Evolent Health, Inc.
"Our board of directors and executive leadership team conducted a thorough review of strategic alternatives for the Company. After careful consideration, we determined that transactions with Optum and Vista Equity Partners allow us to accelerate the success of our health care and education businesses while realizing immediate value for stockholders," said Robert Musslewhite, chairman and chief executive officer of The Advisory Board Company.
"We believe this is the best course of action for our stockholders, members and employees, and is a testament to our employees' commitment, dedication and hard work in executing our plan and continuing to deliver outstanding value to our members."
The unanimously-approved healthcare merger will “preserve the objectivity and enhance the range, impact, and value” of Optum’s abilities to provide research, consulting, and technology services to a broad customer base, a press release said.
The merger is expected to close by the end of 2017 or beginning of 2018.
Both The Advisory Board and Optum have recently received high marks for their population health management and big data analytics capabilities from leading industry observers including KLAS and Black Book Research.
The consolidation aims to continue to provide healthcare organizations with the tools, competencies, and data analytics insights they need to succeed in the value-based care environment.
"By working together, The Advisory Board Company and Optum will provide deeper strategic insights and practical operational value to clients who are looking for ways to enhance care and respond to the changing market dynamics of the health care system," said Larry Renfro, CEO, Optum.