US health insurer Cigna to buy Express Scripts in $67bn deal

The merger consideration will consist of $48.75 in cash and 0.2434 shares of stock of the combined company per Express Scripts share. Once the transaction has closed, Cigna shareholders will own around 64% of the combined company while Express shareholders will own the rest.

The price represents a premium of around 31% to Express Scripts’ closing price of $73.42 on Wednesday.

David M. Cordani, president and chief executive officer of Cigna, said: "Cigna’s acquisition of Express Scripts brings together two complementary customer-centric services companies, well-positioned to drive greater quality and affordability for customers.

"This combination accelerates Cigna’s enterprise mission of improving the health, well-being and sense of security of those we serve, and in turn, expanding the breadth of services for our customers, partners, clients, health plans and communities. Together, we will create an expanded portfolio of health services, delivering greater consumer choice, closer alignment between the customer and health care provider, and more personalised value. This combination will create significant benefits to society and differentiated shareholder value."

Tim Wentworth, president and chief executive officer of Express Scripts, said the deal delivers attractive value to Express shareholders and that together, the businesses "will help make the healthiest choices the easiest choices, putting health and pharmacy services within reach of everyone we serve".

"Adding our company's leadership in pharmacy and medical benefit management, technology-powered clinical solutions, and specialised patient care model to Cigna’s track record of delivering value through innovation, we are positioned to transform healthcare."

At 1140 GMT, Express Scripts shares were up 16% in pre-market trade to $85.00.