UnitedHealthcare to Acquire Fiserv Health | Business Wire

MINNEAPOLIS–(BUSINESS WIRE)–UnitedHealthcare, a UnitedHealth Group (NYSE:UNH) company, today

announced that it's signed a definitive agreement with Fiserv, Inc.

(NASDAQ:FISV) to acquire substantially all of Fiserv’s

health-related businesses for $775 million in cash. The transaction

includes Fiserv Health, a leading administrator of medical benefits.

Avidyn Health, a care facilitation business. The Fiserv Health

Speciality Solutions businesses (which include J.W. Hutton, a subrogation

and overpayment recovery organisation. PpoONE, a claim repricing and

data management service). Fiserv Health’s

Pharmacy Benefits Management business (PBM) Innoviant will also be part

of the transaction.

Fiserv Health provides administrative services to an estimated two

million individuals and will significantly strengthen and enhance the

scale and scope of UnitedHealthcare’s

customized benefit service offerings. Current Fiserv Health management

will play a key role in the leadership of the combined businesses and in

advancing dedicated services to meet market demands for customized and

specialized offerings. Further, Innoviant will complement

UnitedHealthcare’s existing PBM offerings and

Fiserv Health’s Speciality Solutions businesses

will add to the already broad spectrum of products and services that

UnitedHealthcare makes available to the marketplace.

Ken Burdick, president and chief executive officer of UnitedHealthcare,

said, “Fiserv Health has a set of strategic

and well-positioned businesses, a strong management team and talented

employees who consistently deliver excellent customer service. Combining

Fiserv Health’s vibrant assets and

capabilities with those we currently offer will produce an expanded

suite of services for customers seeking dedicated, customized benefit

packages, such as Taft-Hartley trusts and voluntary employees’

beneficiary associations, hospitals, states and municipalities and other

market participants requiring customized solutions. We look forwards to

welcoming Fiserv Health’s businesses and

employees into the UnitedHealthcare family and to working together to

provide even more valuable services to our combined customer base.”

The transaction was appealing because of the extensive network

management capabilities and speciality offerings UnitedHealthcare

delivers to its clients, according to Jeffery Yabuki, president and

chief executive officer of Fiserv, Inc. “While

we've been very successful in delivering highly valued services to our

Fiserv Health clients, we believe those clients will have an opportunity

to realise even more value as part of the UnitedHealthcare organisation.

In addition, I believe that our employees will have enhanced career

opportunities with UnitedHealthcare.”

This transaction is expected to close in late 2007 or in the first

quarter of 2008, subject to required regulatory approvals and customary

closing conditions. Is expected to be marginally accretive to 2008

earnings per share.

About UnitedHealth Group

UnitedHealth Group is a diversified health and well-being company

dedicated to making health care work better. Headquartered in

Minneapolis, Minn., UnitedHealth Group offers a broad spectrum of

products and services through six operating businesses:

UnitedHealthcare, Ovations, AmeriChoice, Uniprise, OptumHealth and

Ingenix. Through its family of businesses, UnitedHealth Group serves

more than 70 million individuals nationwide. Visit www.unitedhealthgroup.com

for more information.

About UnitedHealthcare

UnitedHealthcare (www.unitedhealthcare.com)

provides a full spectrum of consumer-oriented health benefit plans and

services. The company organizes access to quality, affordable health

care services on behalf of more than 26 million individual consumers,

contracting directly with more than 535,000 physicians and care

professionals and 4,700 hospitals nationwide to offer consumers broad,

convenient access to services nationwide. UnitedHealthcare is one of the

businesses of UnitedHealth Group (NYSE:UNH), a diversified Fortune 50

health and well-being company.

About Fiserv, Inc.

Fiserv, Inc. (NASDAQ:FISV), a Fortune 500 company, provides information

management systems and services to the financial and insurance

industries. Leading services include transaction processing,

outsourcing, business process outsourcing (BPO), software and systems

solutions. The company serves more than 18,000 clients worldwide and is

the leading provider of core processing solutions for U.S. banks, credit

unions and thrifts. Fiserv was ranked the largest provider of

information technology services to the financial services industry

worldwide in the 2004, 2005 and 2006 FinTech 100 surveys. Headquartered

in Brookfield, Wis., Fiserv reported more than $4.4 billion in total

revenue for 2006. For more information, please visit www.fiserv.com.

Forward-Looking Statements

This news release may contain statements, estimates, projections,

guidance or outlook that constitute “forwards-looking”

statements as defined under U.S. federal securities laws. Generally the

words “believe,” “expect,”

“intend,” “estimate,”

“anticipate,” “plan,”

“project,” “will”

and similar expressions, identify forwards-looking statements, which

generally aren't historical in nature. These statements may contain

information about financial prospects, economic conditions, trends and

uncertainties. We caution that actual results could differ materially

from those that management expects, depending on the outcome of certain

factors. These forwards-looking statements involve risks and

uncertainties that may cause UnitedHealth Group’s

actual results to differ materially from the results discussed in the

forwards-looking statements. Some factors that could cause results to

differ materially from the forwards-looking statements include: the

potential consequences of the findings announced on October 15, 2006 of

the investigation by an Independent Committee of directors of our

historic stock option practices. The consequences of the restatement of

our previous financial statements, related governmental reviews,

including a formal investigation by the Securities and Exchange

Commision. Review by the Internal Revenue Service, U.S.

Congressional committees, U.S. Attorney for the Southern District of New

York and Minnesota Attorney General, a related review by the Special

Litigation Committee of the Company. Related shareholder derivative

actions, shareholder demands and purported securities and Employee

Retirement Income Security Act class actions, the resolution of matters

currently subject to an injunction issued by the United States District

Court for the District of Minnesota, a purported notice of acceleration

with respect to certain of the Company’s debt

securities based upon an alleged event of default under the indenture

governing such securities. Recent management and director changes,

and the potential impact of each of these matters on our business,

credit ratings and debt. Increases in health care costs that are higher

than we anticipated in establishing our premium rates, including

increased consumption of or costs of medical services. Heightened

competition as a result of new entrants into our market.

consolidation of health care companies and suppliers. Events that may

negatively affect our contract with AARP. Uncertainties regarding

changes in Medicare, including coordination of information systems and

accuracy of certain assumptions. Funding risks with respect to revenues

received from Medicare and Medicaid programs. Failure to achieve

business growth targets, including membership and enrolment. Increases

in costs and other liabilities associated with increased litigation,

legislative activity and government regulation and review of our

industry. Our ability to execute contracts on competitive terms with

physicians, hospitals and other service providers. Regulatory and other

risks associated with the pharmacy benefits management industry. Failure

to maintain effective and efficient information systems, which could

result in the loss of existing customers, difficulties in attracting new

customers, difficulties in determining medical costs estimates and

appropriate pricing, customer and physician and health care provider

disputes, regulatory violations, increases in operating costs. Other

adverse consequences. Possible impairment of the value of our intangible

assets if future results don't adequately support goodwill and

intangible assets recorded for businesses that we acquire. Potential

noncompliance by our business associates with patient privacy data.

misappropriation of our proprietary technology. Failure to complete or

receive anticipated benefits of acquisitions. Change in debt to

total capital ratio that's lower or higher than we anticipated.

This list of important factors isn't intended to be exhaustive. A

further list and description of some of these risks and uncertainties

can be found in our reports filed with the Securities and Exchange

Commision from time to time, including annual reports on Form 10-K,

quarterly reports on Form 10-Q and current reports on Form 8-K. Any or

all forwards-looking statements we make may turn out to be wrong. You

shouldn't place undue reliance on forwards-looking statements, which

speak only as of the date they're made. Except to the extent otherwise

required by federal securities laws, we don't undertake to publicly

update or revise any forwards-looking statements.

UnitedHealth Group
John S. Penshorn, 952-936-7214
Brett Manderfeld, 952-936-7216
or
Don Nathan, 952-936-1885 (Media)