Cinga to acquire Express Scripts in $67 billion deal
by March 8, 2018 1:34 pm 338 views
Connecticut-based health insurer Cigna Corp. has agreed to buy pharmacy benefits manager Express Scripts Holding Co. for $67 billion in cash and stocks. On Thursday (March 8), the companies announced the deal as the most recent acquisition in the healthcare sector.
The deal places a value of Express Scripts’ equity at nearly $54 billion and includes the assumption of the company’s $15 billion debt. After the deal closes, Cigna shareholders will own nearly 64% of the combined company.
“Cigna’s acquisition of Express Scripts brings together two complementary customer-centric services companies, well-positioned to drive greater quality and affordability for customers,” said David Cordani, president and CEO of Cigna. “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. 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. This combination will create significant benefits to society and differentiated shareholder value.”
Cordani will lead the combined company as its president and CEO, it will be named Cigna and its headquarters will remain in Bloomfield, Conn.
“First and foremost, we believe this transaction delivers attractive value to the Express Scripts shareholders,” said Tim Wentworth, president and CEO of Express Scripts. “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. We will continue to have a distinct focus at Express Scripts and eviCore on partnering with health plans, and together, build tailored solutions for health plans and their members. Importantly, this agreement is a testament to the work of our team and their resolute focus on providing the best care to patients, and the most value to clients.”