UnitedHealth Group (NYSE: UNH) subsidiary Optum entered a new waiver agreement that has delayed the deadline to complete its $3.3 billion acquisition of Amedisys (Nasdaq: AMED).

The agreement comes on the heels of an antitrust lawsuit that the U.S. Department of Justice (DOJ) filed last month to block the transaction due to concerns that it would reduce competition in the home health and hospice markets.

Expected to close in the fourth quarter of this year, the agreement extended the deadline until 10 days after a final court decision is issued in the lawsuit, or by Dec. 31, 2025, according to a filing with the U.S. Securities and Exchange Commission (SEC).

In the agreement, the companies each waived the right to terminate the transaction following a final order, whether or not appealable, is issued by a federal court in Maryland, with the attorneys general of Maryland, New York, Illinois and New Jersey also joining the complaint.

The agreement also includes a $275 million regulatory break fee, which will increase to $375 million if specific pre-merger divestment revenue targets fall short. Amedisys’ stock saw a 4% dip after the DOJ concerns unfolded in November, with the company’s shares rising 3.5% in premarket trading today following the new agreement, according to a statement.

“Amedisys may take certain actions that would otherwise be prohibited by interim operating covenants contained in the merger agreement and certain closing conditions relating to government approvals are no longer conditions to the consummation of the merger,” according to language in the agreement.

Optum, in June 2023 inked its agreement to acquire Amedisys in an all-cash transaction of $101 per share, or about $3.3 billion. Last summer, the DOJ began investigating potential antitrust concerns related to the deal.

The DOJ performed a similar investigation — and filed a lawsuit — when Optum acquired the health care technology company Change Healthcare. A federal court eventually allowed that deal to proceed.

The rationale behind the DOJ’s lawsuit against Optum and Amedisys is multi-faceted, citing potential adverse impacts on competition, home-based care workers and payers.

Amedisys provides home health, hospice and palliative care, among other services to more than 465,000 patients annually across 38 states and Washington D.C.

In order to mitigate antitrust concerns, Amedisys agreed to sell some of its locations to the PE-backed home health and hospice provider VitalCaring, possibly more than 100. The VitalCaring transaction is contingent on approval of the UnitedHealth Group acquisition. In a separate matter, a judge recently ordered VitalCaring to allocate 43% of future profits to Encompass Health (NYSE: EHC) and Enhabit (NYSE: EHAB).