Report: UnitedHealth Closing in on Deal to Buy Advisory Board’s Healthcare Division | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Report: UnitedHealth Closing in on Deal to Buy Advisory Board’s Healthcare Division

July 7, 2017
by Rajiv Leventhal
| Reprints

UnitedHealth Group and Vista Equity Partners are nearing a deal to acquire Advisory Board, the Washington, D.C.-based healthcare consulting and technology firm, according to a July 6 report in Bloomberg.

The report noted that after the sale, Advisory Board would be split up. “The UnitedHealth would acquire Advisory Board’s healthcare division and Vista would buy its education business, said the people, who asked not to be named because discussions are private. The education unit may sell for as much as $1.5 billion, one of the people said,” per the Bloomberg report.

While no deal is guaranteed, and an announcement could be a month away, that didn’t stop action from occurring on Wall Street. According to the report, “Advisory Board jumped as much as 14 percent Thursday to the highest level 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.”

The Minnetonka, Minn.-based UnitedHealth Group is the nation’s biggest health insurer and has made major forays into the health IT space before, as it offers products and services through two operating businesses, UnitedHealthcare and Optum, both subsidiaries of UnitedHealth Group. In fact, Optum has gotten so big itself that it was named a Healthcare Informatics Most Interesting Vendor this year, after finishing first on the Healthcare Informatics 100 list of health IT vendors ranked by revenue for the third straight year. Optum reported a health IT revenue of $7.3 billion in 2016.

Meanwhile, Advisory Board ranked 17th on The 100 list with a 2016 health IT revenue of over $800,000,000. The company combines its strengths in consulting, research, and technology to help healthcare organizations improve performance, its officials attest. It was reported earlier this year that the company was exploring a merger with Evolent Health, an Arlington, Va.-based healthcare technology provider. That news came shortly after Advisory Board announced that it was laying off about 200 people following a weak fourth quarter in 2016.

Now, a deal to be acquired could be in store instead. According to Bloomberg, “Vista has focused on high-growth software companies in recent years. First-quarter education revenue at Advisory Board, while comprising only 33 percent of the company’s overall sales, grew 15 percent from a year earlier. Healthcare sales declined 6.6 percent, excluding exited programs.”

Get the latest information on Health IT and attend other valuable sessions at this two-day Summit providing healthcare leaders with educational content, insightful debate and dialogue on the future of healthcare and technology.

Learn More

Topics

News

Duke Health First to Achieve HIMSS Stage 7 Rating in Analytics

North Carolina-based Duke Health has become the first U.S. healthcare institution to be awarded the highest honor for analytic capabilities by HIMSS Analytics.

NIH Releases First Dataset from Adolescent Brain Development Study

The National Institutes of Health (NIH) announced the release of the first dataset from the Adolescent Brain Cognitive Development (ABCD) study, which will enable scientists to conduct research on the many factors that influence brain, cognitive, social, and emotional development.

Boston Children's Accelerates Data-Driven Approach to Clinical Research

In an effort to bring a more data-driven approach to clinical research, Boston Children’s Hospital has joined the TriNetX global health research network.

Paper Records, Films Most Common Type of Healthcare Data Breach, Study Finds

Despite the high level of hospital adoption of electronic health records and federal incentives to do so, paper and films were the most frequent location of breached data in hospitals, according to a recent study.

AHA Appoints Senior Advisor for Cybersecurity and Risk

The American Hospital Association (AHA) has announced that John Riggi has joined the association as senior advisor for cybersecurity and risk.

Report: Healthcare Accounted for 45% of All Ransomware Attacks in 2017

Healthcare fell victim to more ransomware attacks than any other industry in 2017, according to a new report from global cybersecurity insurance company Beazley.