UnitedHealth Group Inc. won court approval for its $7.8 billion acquisition of Change Healthcare Inc., defeating a Justice Department lawsuit that sought to block the deal.
The decision by a Washington federal judge Monday is a win for UnitedHealth Group, which has sought to diversify its business beyond insurance. The company plans to merge Change -- which operates a network used by doctors, hospitals, dentists and pharmacies to exchange health insurance claims for reimbursement -- with its Optum Insight data and consulting business.
In a one-page order, US District Judge Carl Nichols ruled in favor of the merger and directed the companies to divest ClaimsXten to TPG Capital, as proposed.
Shares of Change rose by more than 7% in early trading Tuesday. UnitedHealth shares were little changed.
UnitedHealth is pleased with the verdict and looks forward to "combining with Change Healthcare as quickly as possible," a spokesman said in an email. A spokeswoman for Change also praised the verdict.
Jonathan Kanter, the assistant attorney general in the Justice Department's antitrust division, said in a statement that the agency "is reviewing the opinion closely to evaluate next steps."
The judge, who was appointed by former President Donald Trump, said his legal analysis supporting the ruling will remain temporarily sealed because "it may contain competitively sensitive information."
The decision is a blow to President Joe Biden's antitrust agenda. The case was the first major challenge to a health-care deal to go to trial during the Biden administration. The government argued that putting Change's data on rival insurance companies in UnitedHealth's hands could damage competition. The companies countered that UnitedHealth has policies in place to protect sensitive data, and that exploiting data on other insurers would put its business at risk.
The case is US v UnitedHealth Group, 22-cv-481, US District Court for the District of Columbia.
(Updates with comment from Justice Department in sixth paragraph.)
--With assistance from John Tozzi.
