Cigna to acquire pharmacy benefits manager Express Scripts for $67bn
Cigna acquisition of Express Scripts : US health insurance company Cigna has struck a massive deal of around $67 billion to acquire Missouri-based pharmacy benefits manager Express Scripts, in a move to create an enlarged portfolio of health services.
The cash and stock transaction, which has the approval of the board of directors of either side, includes an assumption of nearly $15 billion of Express Scripts’ debt by Cigna.
As per the terms of the Cigna Express Scripts merger, Express Scripts shareholders will receive $48.75 in cash along with 0.2434 shares of stock of the enlarged company for each of the shares they hold in the pharmacy benefits manager.
Upon closing of the Cigna Express Scripts merger, shareholders of the US health insurance company will own around 64% of the enlarged company with the remaining stake of about 36% to be owned by Express Scripts shareholders.
Tim Wentworth – President and CEO of Express Scripts, commenting on Cigna acquisition of Express Scripts, said: “Together, our two organizations will help make the healthiest choices the easiest choices, putting health and pharmacy services within reach of everyone we serve.
“Adding our company’s leadership in pharmacy and medical benefit management, technology-powered clinical solutions, and specialized patient care model to Cigna’s track record of delivering value through innovation, we are positioned to transform healthcare.”
The Cigna Express Scripts combination will provide a comprehensive suite of medical, behavioral and specialty pharmacy among other health engagement services. These health services will be accessible across a broad range of retail and online distribution channels, thereby giving more options for all customers.
Commenting on Cigna acquisition of Express Scripts, David M. Cordani – President and CEO of Cigna, said: “Cigna’s acquisition of Express Scripts brings together two complementary customer-centric services companies, well-positioned to drive greater quality and affordability for customers.
“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.”
The enlarged company will be known as Cigna with headquarters in Bloomfield, Connecticut.
Cigna acquisition of Express Scripts is anticipated to be closed by the year and will be subject to certain conditions, including approval of shareholders of both companies, and most importantly, receipt of applicable regulatory approvals.