$4.4 Billion Health Care Merger (CHSI, ESRX, SXCI)
Health care benefits manager SXC Health Solutions Corp. (NASDAQ: SXCI) has agreed to acquire competitor Catalyst Health Solutions Inc. (NASDAQ: CHSI) in a deal valued at $4.4 billion. According to the announcement: Catalyst shareholders will receive $28.00 in cash and…
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Catalyst shareholders will receive $28.00 in cash and 0.6606 shares of SXC stock for each Catalyst share, which implies a purchase price of $81.02 per Catalyst share and a premium of approximately 28% based on the closing stock prices of SXC and Catalyst on April 17, 2012 .
The deal is a response to last month’s $29 billion merger of Express Scripts Holdings Co. (NASDAQ: ESRX) and Medco Health. The combined market cap of SXC and Catalyst is $10 billion, a little more than a third of Express Scripts’ $28.5 billion market cap.
Shares of SXC are up about 9.8% at $88.10, which would be a new 52-week high if it holds. Shares of Catalyst are up almost 33% at $84.50, another 52-week high.
Paul Ausick
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
