Health insurer Cigna Corp. plans to buy Express Scripts Holding Co. in a cash-and-stock deal worth $52 billion, excluding debt, that the companies say will expand their health care offerings and help them control costs.
The Wall Street Journal reported late Wednesday night the two companies were nearing a deal and could announce it as soon as Thursday.
Under the terms of the agreement, Express Scripts ESRX, -0.41% shareholders will receive $48.75 in cash and 0.2434 shares in the combined company for each Express Scripts share. The consideration amounts to about $96.03 for each Express Scripts share, a 31% premium over Express Scripts’ Wednesday closing price of $73.42.
The deal has a total transaction value of $67 billion, which includes Cigna’s CI, +1.06% assumption of $15 billion of Express Scripts’ debt.
An expanded version of this report appears on WSJ.com
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