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Express Scripts picking up eviCore
Posted on Tuesday, 10 October 2017 14:46
US pharmacy benefit manager Express Scripts has agreed to acquire eviCore Healthcare, its South Carolina-headquartered peer.

Under the terms of the acquisition, the buyer will pay USD 3.60 billion for the business.

Completion is expected to follow during the final quarter of this year, subject to the green light from regulatory authorities, as well as customary closing conditions.

The deal will represent an exit for eviCore’s investors, which include General Atlantic, TA Associates and Ridgemont Equity Partners.

Express Scripts chief executive Tim Wentworth said the combination will bring the business closer to its stated aim of becoming the US leader in patient benefit management.

He added: By further strengthening our independent model and creating numerous opportunities for growth, the acquisition of eviCore will deliver value for our clients, patients, providers, and shareholders."

Express Scripts will also be able to enter the pharmacy market and offer an improved offering to customers as a consequence.

Diluted earnings per share are expected to increase in the first full year of operation as a result of the acquisition.

eviCore was first named as a potential target back in May, when people with knowledge of the matter told Reuters the firm was considering multiple options, including a potential sale or initial public offering.

At the time the sources said the company was hoping whatever path it took would value it at over USD 4.00 billion, including debt.

General Atlantic first invested in the business in December 2014, when it bought an undisclosed majority shareholding for an unknown consideration.

According to Zephyr, the M&A database published by Bureau van Dijk, Express Scripts has already completed one acquisition this year, having picked up Florida-headquartered pharmacy benefit management services provider Matrix Healthcare Services.

No financial details of the transaction were disclosed.

The buyer also participated in a private placing by Californian software player Mango Health back in March.

© Zephus Ltd