CVS Health Buys Oak Street Health for $9.5 Billion
2023.02.08 08:39
CVS Health Buys Oak Street Health for $9.5 Billion
By Ray Johnson
Budrigannews.com – CVS Health Corp. announced on Wednesday that it would acquire Oak Street Health Inc., a primary care provider, for approximately $9.5 billion in cash as the pharmacy giant seeks to enter the urgent care industry.
CVS stated that the deal, including the debt, was worth $10.6 billion. Its offer of $39 for each share is approximately 73% higher than Oak Street’s previous closing price before the deal talks were first reported in January and nearly 16% higher than Tuesday’s close.
According to data provided by Refinitiv, CVS’s acquisitions of health insurer Aetna for $69 billion in 2017 and its nearly $13 billion acquisition of pharmacy services provider Omnicare in 2015 make them the third and fourth largest transactions of the last decade, respectively.
With the purchase of Oak Street, CVS will have control over 160 primary care clinics that provide services to people who are covered by the Medicare program, which is run by the government of the United States and is for people 65 and older or disabled people who meet the requirements.
In addition to diagnosing, managing, and treating a wide range of chronic health issues, primary care centers typically provide routine health screenings, preventive medicine, and other services.
Since last year, CVS has been looking for a medical services acquisition. It had attempted to acquire One Medical, a primary care provider, but Amazon.com (NASDAQ:) Bloomberg News reports that the parties ultimately agreed to acquire the company in July for $3.5 billion.
CVS Health (NYSE:) shares rose 5%, while Oak Street shares rose 5%. before the bell, fell nearly 1%.
