Advisory Board sells healthcare arm to Optum in $1.3B deal

The Advisory Board in Washington, D.C., will sell off its healthcare division to Minnetonka, Minn.-based UnitedHealth Group’s Optum arm for $1.3 billion, including debts, Reuters reports. 

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Under the agreement, the board’s healthcare division will become a wholly-owned subsidiary of Optum. The Advisory Board is also selling its education division to San Francisco-based Vista Equity Partners for $1.55 billion. The Vista deal is expected to close by the end of this year or early 2018, after which the Advisory Board will complete its merger with Optum.

The Advisory Board’s shares rose 6.8 percent to $53 Tuesday after the deals were announced, the report states.

The Optum merger agreement is subject to contract conditions and regulatory compliance.

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