CVS Well being confirms deal to purchase Oak Avenue Well being for $10.6 billion By Investing.com

By Senad Karaahmetovic

CVS Well being (NYSE:) at this time confirmed it has reached an settlement to accumulate Oak Avenue Well being (NYSE:) for $39 per share in money, at an enterprise worth of about $10.6 billion or an fairness worth of roughly $9.47B.

“Combining Oak Avenue Well being’s platform with CVS Well being’s unmatched attain will create the premier value-based main care resolution,” mentioned CVS Well being President and CEO Karen Lynch. “Enhancing our value-based choices is core to our technique as we proceed to redefine how folks entry and expertise care that’s extra reasonably priced, handy, and linked.”

The Wall Avenue Journal reported in current days that the 2 corporations are near reaching an settlement. Because of this, OSH inventory soared about 30% from the beginning of the week earlier than including an additional 5% in pre-open Wednesday.

“This settlement with CVS Well being will speed up our skill to ship on our mission and proceed enhancing well being outcomes, decreasing medical prices, and offering a greater affected person expertise whereas providing vital worth to our shareholders,” mentioned Oak Avenue Well being CEO Mike Pykosz.

After the transaction closes, Oak Avenue Well being will grow to be a part of CVS Well being’s lately shaped Well being Care Supply group.

Commenting on the WSJ report, Raymond James analysts mentioned yesterday that the deal is about 5% dilutive at $39 a share.

“Suffice to say that CVS has acknowledged that it’s behind its opponents, wants an asset it may well scale and OSH is the very best asset left… The important thing uncertainty is what adjustments CVS may make to OSH’s development plans, and we observe that WBA considerably raised Village MD’s co-located retailer openings,” they wrote.

CVS shares are up about 1.3% in premarket Wednesday on OSH information, in addition to better-than-expected .