Ambea outlines $304m Humana bid

Healthcare consolidation is on the rise as Spire mulls its own deal.

Swedish care provider Ambea has made a SEK2.96 billion ($304 million) bid to acquire U.S. rival Humana, marking one of the latest consolidation moves in the healthcare sector.

The offer values Humana at around $6.42 per share, a 26.8% premium to the company’s pre-offer price on June 26, with existing shareholders set to receive around $2.06 in cash, 0.305 newly issued Ambea shares, and one contingent value right (CVR) per share.

CVRs are a way for buyers to provide additional compensation to target company shareholders if certain future milestones are achieved. They are often used to address valuation differences between acquiring and target companies.

In Humana’s case, the CVRs hinge on the outcome of the company’s ongoing legal case claim against the Swedish state over the revocation of its personal assistance license. Shareholders could receive an additional payment of up to $0.45 per share if the appeal is successful.

Regardless of the outcome of the case, Ambea has said it plans to divest Humana’s Personal Assistance Sweden business following completion of the offer.

Humana's board, as well as investors representing around 41.9% of the shares, have recommended that shareholders accept the offer, which still remains subject to customary conditions.

The proposed combination would strengthen Ambea’s position in the Nordic care market, where ageing populations, rising demand for specialist care, and increasing regulatory requirements are driving structural growth.

By combining their operations, the companies aim to broaden their care offering, improve operational efficiencies, and create a larger platform capable of meeting growing demand across the region.

The deal comes as British private healthcare operator Spire Healthcare is engaged in its own takeover by investment firm Toscafund Asset Management, highlighting the increasing consolidation of Europe’s healthcare services sector.

If completed, the acquisition of Humana would further strengthen Ambea's position as one of the Nordic region's largest care providers and further reinforce consolidation as a defining theme across the healthcare industry.

Humana’s stock was trading at $396.36 at 11:00 on Tuesday in New York, up 1.9% from Monday’s close. The stock is up 54.8% year-to-date.

Ambea’s stock has also risen 1.6% as of 17:00 on Tuesday in Stockholm, sitting 4.7% up year-to-date.

Like this article? Sign up for our free newsletter.