To Be Split and Sold for $2.58 Billion, Including Debt

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Under the agreement, the board's healthcare division will become a wholly-owned subsidiary of Optum.

The Advisory Board Co. will be split up and sold in a deal worth around $2.21 billion, with its health-care business going to UnitedHealth Group Inc. and its education unit to private-equity firm Vista Partners LLC.

United Health's health care consulting and health care delivery operation, named Optum, will get The Advisory Board's health care consulting business.

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The combined deal would give Advisory Board's shareholders about $54.29 per share in cash, including a fixed amount of $52.65 per share and the after-tax value of its 7.6 percent stake in Evolent, at closing.

Advisory Board said in February it would explore options, including a sale of part or the entire company, after activist fund Elliott Management said the company's stock was "significantly undervalued".

"We believe this is the best course of action for our stockholders, members and employees", he said.

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