Cigna Corporation, one of America’s largest health insurers, and Express Scripts Holding Company, one of America’s biggest pharmacy benefits managers, have entered into a definitive agreement whereby Cigna will acquire Express Scripts. The cash and stock transaction was valued at approximately $67 Bn, including Cigna’s assumption of approximately $15 Bn in Express Scripts’ debt.
At transaction closing, expected by December 31, 2018, Cigna shareholders will own approximately 64 % of the combined company and Express Scripts shareholders will own approximately 36 %. The combined company would be named Cigna and would have an expanded portfolio of health and pharmaceutical services.
Cigna has been trying to strike a major deal for several years. It called off a $54 Bn merger with Anthem last year after a federal judge blocked the deal on antitrust grounds. The acquisition would provide cost controls and limits Cigna’s exposure to brick-and-mortar retailers, which are under threat from e-commerce companies like Amazon.
Cigna Corporation is a global company offering an integrated suite of health services, such as medical, dental, behavioural health, pharmacy, vision, supplemental benefits and other related products including group life, accident, and disability insurance. Cigna sells in 30 countries and has more than 95 M customers. Express Scripts provides integrated pharmacy benefit management services, distributes a full range of biopharmaceutical products and provides extensive cost-management and patient-care services. Express Scripts administers drug plans for more than 85 M American citizens with employer and government health insurance.
