Walgreens Boots Alliance's Unit Close To Merging with Summit Health In $9B Deal

Walgreens Boots Alliance's Unit Close To Merging with Summit Health In $9B Deal
  • Walgreens Boots Alliance Inc's WBA Village Practice Management is reportedly close to around a $9 billion deal with Summit Health, the parent company of CityMD urgent-care centers.
  • Warburg Pincus LLC-backed Summit Health has more than 370 locations in New York, New Jersey, Connecticut, Pennsylvania, and Central Oregon.
  • Village Practice Management, which does business as VillageMD, provides care for patients at free-standing practices and Walgreens locations, virtually and in the home. 
  • Bloomberg a week ago reported VillageMD's interest in Summit Health.
  • Related: CVS, Walmart, Walgreens Agree On $13.8B Opioid-Related Lawsuit Settlement.
  • Health insurer Cigna Corp CI is expected to invest in the combined company, Wall Street Journal reported.
  • There is no guarantee the parties will reach a deal, the people cautioned, noting that they are still hammering out details of an agreement.
  • Walgreens appears to have pre-empted a sale process for Summit Health that was set to kick off next year, according to the people, who said the company was about to interview banks before it received interest from VillageMD.
  • Price Action: WBA shares closed at $37.07 on Friday.

Posted In: BriefsLarge CapM&ANewsHealth CareGeneral