What did UnitedHealth Group Inc. pay for Diplomat Pharmacy Inc.?

UnitedHealth Group Inc. acquired Diplomat Pharmacy Inc. for $898.0M in 2019 (12.1x EBITDA), equivalent to 0.20x revenue. Target revenue was approximately $5124.0M. Target EBITDA was approximately $74.0M.

What does Diplomat Pharmacy Inc. do?

Diplomat Pharmacy Inc. is a pharmacy business.

What multiple did UnitedHealth Group Inc. pay for Diplomat Pharmacy Inc.?

12.1x EBITDA and 0.20x revenue, based on disclosed deal value of $898.0M and disclosed financials.

M&A TRANSACTION · 2019

Diplomat Pharmacy Inc. acquired by UnitedHealth Group Inc.

$898.0M· 12.1x EBITDA· 0.20x revenue

Target

Diplomat Pharmacy Inc.

Acquirer

UnitedHealth Group Inc.

Strategic buyer

Disclosed financials at time of acquisition

Revenue

$5124.0M

EBITDA

$74.0M

Deal Value

$898.0M

EV/EBITDA

12.1x

Context

This $898.0M acquisition of Diplomat Pharmacy Inc. by UnitedHealth Group Inc. sits in the pharmacy sub-vertical. The 12.1x EBITDA multiple paid in 2019 can be compared against the population median for pharmacy transactions of similar size on our Pharmacy valuation hub. UnitedHealth Group Inc. is acquiring as a strategic buyer; see how strategic acquirers typically price pharmacy businesses on our Pharmacy strategic buyer-pool page.

Source

Data sourced from SEC Fairness Opinion — primary source. All figures reflect disclosed values at the time of the acquisition; no estimated or imputed data. Methodology

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Citation: ExitValue.ai. (2019). Diplomat Pharmacy Inc. acquired by UnitedHealth Group Inc.. https://exitvalue.ai/deals/diplomat-pharmacy-inc-acquired-by-unitedhealth-group-inc-fairness-opi