According to CVS, it will fund the deal with “cash from its balance sheet” and resources currently available. The company also notes that it will do so while continuing to maintain its credit rating.
Shawn Guertin, Vice President and CFO of CVS, said the following about the deal:
“This is a major step as we continue to execute on our strategy […] We expect the acquisition to be meaningfully accretive to earnings and, as a result, are increasingly confident we can achieve our long-term adjusted EPS goals as outlined at our Investor Day in December 2021.”
Of course, the acquisition still requires the approval of regulators and shareholders. New Mountain Capital, however — which owns roughly 60% of SGFY stock — has agreed to vote in favor of the deal. If all goes well, the acquisition will close in the first half of 2023.
SGFY stock is seeing heavy movement on today’s news. This has more than 19 million shares trading hands as of this writing. For comparison, the company’s daily average trading volume is closer to 2.4 million shares.
SGFY stock is up slightly as of Tuesday morning.
There’s more hot stock market news for traders to dive into below!
InvestorPlace is home to all of the latest stock news traders need to know about for Tuesday! Among that is what has shares of Bed Bath & Beyond (NASDAQ:BBBY) falling, why chip stocks are moving today, and details from the CHIPS Act. You can find all of that news at the following links!
More Tuesday Stock Market News
- Bed Bath & Beyond (BBBY) Stock Falls Following Death of CFO Gustavo Arnal
- Why Are Chip Stocks in Focus Today?
- CHIPS Act Update Gives Bears the Upper Hand With Chip Stocks
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.