Traders Sell The News In Omnicare: CVS Confirms Deal To Purchase At $98/Share In Cash
Shares of Omnicare spiked higher by more than 5 percent to the $100 level during Wednesday's post-market trading session following the news release.
CVS Health confirmed Thursday morning that it will acquire Omnicare for $98 per share, valuing the deal at $12.7 billion.
Shares of Omnicare retreated from the $100 level, trading at $95.81 during Thursday's pre-market session, a discount to the $98 per share CVS Health is offering.
CVS Health expects the acquisition to "significantly" expand its ability to dispense prescriptions in assisted living and long-term care facilities, serving the senior patient population. The company will also expand its presence in the rapidly growing specialty pharmacy business.
The deal has been approved by the boards of directors of both companies and is subject to approval by the holders of Omnicare's common stock. The company expects the transaction to close near the end of 2015.
"The acquisition of Omnicare significantly expands our business, providing CVS Health access into a new pharmacy dispensing channel," said CVS Health President and CEO Larry Merlo. "It also creates new opportunities for us to extend our high-quality, innovative pharmacy programs to a broader population of seniors and chronic care patients as they transition across the care continuum. We have been impressed by the Omnicare team and what they have created for the patients they serve."
"We are pleased to have reached this agreement with CVS Health, one of the leading companies in the health care industry, which we believe will allow us to accelerate our mission of enhancing the quality and cost-effectiveness of care for complex patient populations," said Omnicare President and CEO Nitin Sahney. "This exciting combination is the result of a broad and thorough review of our strategic options."
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