Express Scripts Holding Company (ESRX) Buys eviCore Healthcare in $3.6B Deal

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Express Scripts Holding Company (NASDAQ:ESRX) will be acquiring eviCore Healthcare for $3.6 billion.

Express Scripts Holding Company (ESRX) Buys eviCore Healthcare in $3.6B Deal

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Express Scripts Holding Company says that the deal will combine its own pharmacy benefit management offering and eviCore Healthcare’s medical benefits management platform. It expects this to give it a entry into the growing medical benefit management market.

Express Scripts Holding Company notes that the deal will also allow for synergies between the two companies. This will result in cost reductions and savings that can be passed on to patients. ESRX also points out that it expects the deal to be accretive to adjusted diluted earnings in the first year following its completion.

The deal for eviCore Healthcare will have Express Scripts Holding Company obtaining it from current investors. These investors are General Atlantic, TA Associates, and Ridgemont Equity Partners.

EviCore Healthcare currently employs roughly 4,000 people. These people will continue to work with the company following the acquisition. Express Scripts Holding Company says that the company will operate as a standalone business once the transaction is complete.

Express Scripts Holding Company is expecting the deal to acquire eviCore Healthcare to reach completion by the end of 2017. However, it still needs to complete customary closing conditions and get regulatory approval before this can occur.

Express Scripts Holding Company says that it plans to provide additional information concerning the acquisition of eviCore Healthcare during its upcoming earnings call. This will take place on Oct. 25, 2017.

ESRX stock was down 1% as of Tuesday afternoon and is down 15% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/10/express-scripts-holding-company-esrx/.

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