Cigna Corp. likely to acquire Express Scripts for over $50 billion
Category: #world  By Saipriya Iyer  Date: 2018-03-08
  • share
  • Twitter
  • Facebook
  • LinkedIn

Cigna Corp. likely to acquire Express Scripts for over $50 billion

The United States based health insurance firm Cigna Corporation has apparently declared its intention to buy Express Scripts Holding Company. The largest pharmacy benefit firm in the U.S. is likely to be sold out for a valuation of around USD 54 billion in a cash & stock agreement.

As per medical industry experts, this strategic decision is aimed at reducing the rising healthcare expenditure and improving Cigna’s product & service offering across the healthcare sector. For the record, Cigna’s offer includes USD 48.75 in cash and 0.2434 shares of stock of the combined entity for every share of Express Scripts. It amounts to nearly USD 96.03 per share, which displays a premium of about 31% to the closing market price of Express.

Reports cite that the announcement of the purchase deal between Cigna & Express follows right after the USD 69 billion merger of the U.S. based health insurance firm Aetna Inc. with CVS Health Corporation, a U.S. retail pharmacy & healthcare firm. The mergers & acquisition deals taking place across the healthcare sector display a shift toward major consolidation, claim experts. Elaborating further, they say that these transactions between medical magnates will help bring pharmacy & medical claims under one roof and enhance preventative measures across the hospitals.

After the finalization of the agreement, Cigna Inc.’s investors will possess the ownership of nearly 64% of the shares of the joint entity, while the stakeholders of Express Scripts will own the remaining shares. The key officials of Cigna have announced that the firm is likely to fund the cash for the agreement through Express Scripts’ outstanding debts, new debt issuances, and cash on hand.

As per the company sources, it has already received complete debt financing from The Bank of Tokyo-Mitsubishi UFJ Limited and Morgan Stanley Senior Funding. Incidentally, the deal is valued at a total of USD 67 billion, including close to USD 15 billion in Express Scripts' debts.



About Author

Saipriya Iyer

Email: [email protected]   

Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

Read More

More News By Saipriya Iyer

Tetra Pak announces target to reach net-zero GHG emissions by 2030
Tetra Pak announces target to reach net-zero GHG emissions by 2030
By Saipriya Iyer

Tetra Pak, a food processing and packaging solutions provider, has recently announced its target to reach net-zero GHG (greenhouse gas) emissions in its operations by 2030.

The targ...

DTE Energy pledges to reach net-zero emissions of GHG by 2050
DTE Energy pledges to reach net-zero emissions of GHG by 2050
By Saipriya Iyer

DTE Energy has reportedly pledged to reach the net-zero GHG (greenhouse gas) emissions by 2050. This can be ensured through various actions involving customers, suppliers, and its infrastructure, that align with the lo...

Researchers investigate a novel treatment for Childhood Alzheimer’s
Researchers investigate a novel treatment for Childhood Alzheimer’s
By Saipriya Iyer

Researchers at the Lundquist Institute have reportedly collaborated with the Cure Sanfilippo Foundation on a new clinical trial to investigate if repurposing an anti-inflammatory drug could provide relief to children t...