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Cigna to buy Express Scripts as health shakeout speeds up

Cigna's deal was prompted by high drug costs; Express Scripts is the largest remaining independent drug middleman.

By Robert Langreth and Peter Vercoe | Updated on March 08, 2018
Cigna logo on building As the health care industry continues to be disrupted, Cigna says it is buying Express Scripts. (Photo: AP)

(Bloomberg) –Cigna Corp. agreed to buy Express Scripts Holding Co. in an about $54 billion deal that builds on the rapid transformation of the health-care business as companies and consumers chafe at rising costs.

The price includes $48.75 in cash and 0.2434 shares of stock of the combined company per Express Scripts share, the companies said in a statement Thursday.

The terms represent a roughly 31 percent premium to Express Scripts’ closing price on Wednesday, according to the statement. Cigna will assume approximately $15 billion in Express Scripts debt, which the companies said will put the total value of the deal at $69.6 billion.

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