CIGNA Corporation To Acquire Express Scripts

CIGNA Corporation, a $41.62b provider of healthcar insurance services acquires Express Scripts Inc, a $100.06b provider of pharmacy benefit management services. The U.S. Justice Department recently cleared this deal, part of the wave of consolidations transforming the health care industry. Amazon’s move into the health care business has forced established companies to rethink how they can compete. Cigna and Express Scripts said their merger would benefit consumers by bringing together patients’ records to improve treatments and lower costs. Express Scripts is the last major independent pharmacy benefit manager -- negotiating with drug companies to lower costs for insurers and employers. The company is responsible for the prescription plans of more than 80 million people. The Justice Department also cleared CVS' merger with health insurer Aetna. Deal value -- $68b (including $15b in Express Scripts’ debt) on revenue of $100.1b (0.68x) and EBTIDA of $7.1b (9.577x).

Keywords: Healthcare Investment Banking, Healthcare M&A, Healthcare mergers