US-based SXC Health Solutions Corp today said that it will buy pharmacy benefit manager Catalyst Health Solutions Inc for about $4.4 billion in cash and stock, in order to create a leading paying and processing prescription drug claims provider.
The deal comes just weeks after Express Scripts' $29.1-billion acquisition of Medco Health Solutions was cleared by the US regulator (See: Express Scripts and Medco Health in $29.1-bn merger pact).
Under the deal that is expected to close in the second half of 2012, Catalyst shareholders will receive $28 in cash and 0.6606 SXC shares for each Catalyst share held, which implies a purchase price of $81.02 per Catalyst share and a premium of around 28 per cent based on the closing stock prices of SXC and Catalyst on 17 April.
The transaction will join SXC's industry-leading pharmacy benefit management (PBM) tools, technology and expertise with Catalyst's local and collaborative client-centric PBM business model, creating a leading independent provider of PBM solutions.
Post completion, SXC shareholders would own approximately 65 per cent of the combined company, and Catalyst shareholders are expected to own approximately 35 per cent.
The combined company is expected to have $13 billion in revenue and will be headquartered in Lisle, Illinois. It will also maintain a presence in Rockville, Maryland.