UPDATED: CVS Nearing Another Major Deal — $10.5B Acquisition of Oak Street Health, Says WSJ
Tuesday, February 07, 2023
The Wall Street Journal is reporting that CVSHealth is close to an agreement to acquire Oak Street Health for about $10.5 billion, including debt.
“[A] deal that would rapidly expand the big healthcare company’s footprint of primary-care doctors with a large network of senior-focused clinics, according to people with knowledge of the matter. The companies are discussing a price of about $39 a share, the people said. The deal, if it goes through, could be announced as soon as this week, they said. CVS is scheduled to report earnings on Wednesday,” reported WSJ.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“Together, the two acquisitions would push CVS, the parent of its namesake pharmacies as well as the huge Aetna health-insurance operation and a pharmacy-benefit manager, far deeper into the direct provision of healthcare,” reports the WSJ.
Oak Street, which has more than 160 centers across 21 states, focuses on the care of patients enrolled in Medicare.
Word of the deal sent Oak Street Health shares soaring higher Tuesday following a report. Oak Street Health shares were marked 35.6% higher in pre-market trading and indicating an opening bell price of $35.20 per share. CVS shares, meanwhile, edged 1.47% lower to $84.00 each, according to the Street.
On Wednesday morning, CVS is scheduled to report 4th quarter and 2022 earnings.
CVS has not publicly commented on the proposed deal.
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