The deal will have Cigna Corporation acquiring Express Scripts Holding Co for $67 billion. The includes covering $15 billion in debt that ESRX currently holds. Both companies’ Boards of Directors have given the deal their approval.
The offer for Express Scripts Holding Co that has ESRX stock moving today will be a mix of cash and stock. This will have Cigna Corporation paying $48.75 in cash and 0.2434 shares of stock per each share of ESRX stock. This has the deal valuing the pharmacy benefit management company at $54 billion.
Cigna Corporation’s offer for Express Scripts Holding Co represents a 31% premium to the stock’s closing price of $73.42 on March 7, 2018. The deal will have holders of ESRX stock owning 36% of the new company and CI shareholders owning the remaining 64%.
Cigna Corporation and Express Scripts Holding Co are planning to see several strategic benefits from the merger. This includes expanded customer choice, patient-provider alignment and personalized value.
Cigna Corporation is planning to continue operations out of its headquarters in Bloomfield, Conn., once the acquisition is complete. Express Scripts Holding Co will also keep its current headquarters in St. Louis, Miss., after the deal closes
Cigna Corporation and Express Scripts Holding Co are expecting the deal to close by the end of 2018. However, it will first need approval from regulators, as well as shareholders.
ESRX stock was up 8% and CI stock was down 11% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.