8:39 AM, Mar 8, 2018 — Health care company Cigna (CI) has agreed to purchase Express Scripts (ESRX), a provider of pharmacy benefit management services, in a cash and stock transaction aimed at creating an expanded portfolio of health services
The deal, which is expected to be completed by December 31 this year, will see a transaction consideration of $48.75 in cash and 0.2434 shares of stock of the combined company per Express Scripts share, or $54 billion in the aggregate. Including Cigna’s assumption of approximately $15 billion in Express Scripts debt, the transaction is valued at approximately $67 billion.
Upon closing of the transaction, Cigna shareholders will own approximately 64% of the combined company and Express Scripts shareholders will own approximately 36%. Cigna said that the combination is expected to deliver first year double-digit earnings per share accretion and enhance Cigna’s revenue and earnings growth.
“Cigna’s acquisition of Express Scripts brings together two complementary customer-centric services companies, well-positioned to drive greater quality and affordability for customers,” David Cordani, chief executive of Cigna, said.
“This combination accelerates Cigna’s enterprise mission of improving the health, well-being and sense of security of those we serve, and in turn, expanding the breadth of services for our customers, partners, clients, health plans and communities,” he added.
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