Post by icemandios on Mar 8, 2018 15:07:09 GMT
Cigna to buy Express Scripts in $67 billion deal
By Modern Healthcare | March 8, 2018
Health insurer Cigna has agreed to buy pharmacy benefits manager Express Scripts in a deal worth approximately $67 billion of cash, stock and debt.
In a deal announced Thursday, Cigna said it would pay approximately $52 billion in cash and stock and assume $15 billion in Express Scripts' debt. Cigna's President and CEO David Cordani said the deal would drive quality and affordability for consumers.
"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," Cordani said in a statement. "Together, we will create an expanded portfolio of health services, delivering greater consumer choice, closer alignment between the customer and health care provider, and more personalized value.
Under the terms of the deal, Cigna will pay $48.75 in cash and 0.2434 shares of the merged company's stock per Express Scripts share, equalling $96.03 per share, or a 31% premium on Express Scripts' closing price Wednesday.
The Cigna-Express Scripts marriage is just the latest in a spate of insurer-related mergers that have popped up after the federal government last year successfully blocked Anthem's proposed merger with Cigna and Aetna's potential deal with Humana. Now, many have looked to to align with providers through proposed combinations between CVS Health and Aetna, UnitedHealth Group's Optum and DaVita Medical Group, and Humana and Kindred Healthcare—partnerships designed to prevent hospital visits through regular primary-care checkups and home healthcare.
The industry is also seeing new players enter, as Amazon, Berkshire Hathaway and JPMorgan Chase said they would team up to form a healthcare company and lower costs.
Story developing...
By Modern Healthcare | March 8, 2018
Health insurer Cigna has agreed to buy pharmacy benefits manager Express Scripts in a deal worth approximately $67 billion of cash, stock and debt.
In a deal announced Thursday, Cigna said it would pay approximately $52 billion in cash and stock and assume $15 billion in Express Scripts' debt. Cigna's President and CEO David Cordani said the deal would drive quality and affordability for consumers.
"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," Cordani said in a statement. "Together, we will create an expanded portfolio of health services, delivering greater consumer choice, closer alignment between the customer and health care provider, and more personalized value.
Under the terms of the deal, Cigna will pay $48.75 in cash and 0.2434 shares of the merged company's stock per Express Scripts share, equalling $96.03 per share, or a 31% premium on Express Scripts' closing price Wednesday.
The Cigna-Express Scripts marriage is just the latest in a spate of insurer-related mergers that have popped up after the federal government last year successfully blocked Anthem's proposed merger with Cigna and Aetna's potential deal with Humana. Now, many have looked to to align with providers through proposed combinations between CVS Health and Aetna, UnitedHealth Group's Optum and DaVita Medical Group, and Humana and Kindred Healthcare—partnerships designed to prevent hospital visits through regular primary-care checkups and home healthcare.
The industry is also seeing new players enter, as Amazon, Berkshire Hathaway and JPMorgan Chase said they would team up to form a healthcare company and lower costs.
Story developing...