Three Years after Merger, McKesson to Part Ways with Change Healthcare

McKesson Corp. and Change Healthcare Inc. are going their separate ways. McKesson is set to give up its three seats on Change’s board of directors, and as an entity it will no longer own any portion of Change, according to a filing with the U.S. Securities and Exchange Commission. As part of the deal, McKesson (NYSE: MCK) will offer its shareholders the opportunity to swap all or a portion of their McKesson shares for shares in Change. While an exchange rate has yet to be set, nearly 180 million shares could be exchanged at a proposed price of $15.93 per Change share, equalling $2.8 billion. Change (Nasdaq: CHNG) is Nashville’s largest health care IT company, with more than 870 local employees, according to Nashville Business Journal research. The exchange of McKesson’s ownership stake marks the end of a joint venture that began in March 2017, when Change merged with the health care IT division of San Francisco-based McKesson, creating a company with $3.4 billion of revenue annually. At the time, McKesson was to own about 70% of the new venture, with Change owning the remainder.

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Source: https://www.bizjournals.com/nashville/news/2020/02/05/three-years-after-merger-mckesson-to-part-ways.html

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