LONDON, UK / ACCESSWIRE / March 12, 2018 / Active-Investors.com has just released a free research report on Cigna Corp. (NYSE: CI). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=CI as the Company's latest news hit the wire. On March 08, 2018, the Company announced that it has signed an agreement to acquire Express Scripts Holding Co. (NASDAQ: ESRX). The cash plus stock transaction is valued approximately $67 billion. The Board of Directors of both companies have approved the deal. The acquisition will allow Cigna to expand its healthcare services portfolio and bridge the gap between the individuals and their health care providers. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Cigna and Express Scripts Holding most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Management Quotes
Commenting on the acquisition, David M. Cordani, President and CEO 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."
Tim Wentworth, President and CEO of Express Scripts, added:
"Together, our two organizations 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 specialized patient care model to Cigna's track record of delivering value through innovation, we are positioned to transform healthcare."
Terms of Acquisition
As per the terms of the acquisition agreement, Cigna has offered to pay $48.75 in cash and 0.2434 Cigna's shares for each Express Scripts' share. The offer is at 31% premium of Express Scripts' share price of $73.42 at the end of trade on March 07, 2018. Cigna has also agreed to assume Express Scripts' debt valued approximately $15 billion as part of the deal. The entire transaction is valued at approximately $67 billion. The deal is expected to close by December 31, 2018, subject to receiving regulatory and shareholders' approval and other closing conditions.
Once the transaction is completed, Cigna is expected to have a majority holding of approximately 64% in the merged entity and remaining 36% holding will be owned by Express Scripts' shareholders. Both companies will continue to operate as independent entities till the deal is completed.
On completion of the deal, the merged entity will continue with the Cigna name and will be headquartered in Bloomfield, Connecticut, while Express Scripts will continue to be headquartered in St. Louis, Missouri. The merged Company has pledged $200 million for its charitable foundation on completion of the deal. The charitable foundation aims to support local communities where the Company operates and focus on improving societal health.
David Cordani will be the President and CEO of the merged company while Tim Wentworth will be the President of Express Scripts. The Board of Directors of the merged company is expected to have a total of 13 members including four members from Express Scripts' Board.
Financing of the deal
Cigna plans to utilize a mix of cash in hand and fresh debt to handle the cash portion of the acquisition. The Company has already received committed debt financing from Morgan Stanley Senior Funding, Inc. and The Bank of Tokyo-Mitsubishi UFJ, Ltd. However, the deal is not subject to any financing conditions.
Cigna's total debt is expected to be approximately $41.1 billion after the completion of this acquisition and a debt-to-capitalization ratio of approximately 49%. The Company aims to reduce this ratio to be in the 30s within 18-24 months of completing the transaction. In the meanwhile, Cigna is confident of maintain its investment grade ratings.
Benefits of the acquisition
The deal will allow Cigna to offer a wider choice to its customers when choosing medical, behavioral, specialty pharmacy, and other healthcare services either via its retail presence or online distribution channels. This will allow customers to cut healthcare costs by choosing the best options suited to their individual needs. Being able to provide complementary healthcare services will help Cigna to act as a connecting link between customers of healthcare and healthcare service providers which could lead to more coordinated care and better outcomes. The deal will allow Cigna to have better control over the prices of drugs, which is a contentious issue for most insurance providers. The deal is expected to simplify health care for its customers as the services provided will be backed by evidence-based care.
About Express Scripts Holding Co.
St. Louis, Missouri-based Express Scripts is a provider of integrated pharmacy benefit management services. Its services include network-pharmacy claims processing, home delivery pharmacy care, specialty pharmacy care, specialty benefit management, benefit-design consultation, drug utilization review, formulary management, and medical and drug data analysis services. The Company also distributes a full range of biopharmaceutical products and provides extensive cost-management and patient-care services.
About Cigna Corp.
Bloomfield, Connecticut-based Cigna is a global health service Company focused on delivering high quality, affordable, and personalized products and solutions to customers and clients. The Company's products and services include an integrated suite of health services viz., medical, dental, behavioral health, pharmacy, vision, supplemental benefits, and other insurance products including group life, accident and disability insurance, etc.
Cigna offers its products and services through its subsidiaries Connecticut General Life Insurance Company, Cigna Health and Life Insurance Company, Life Insurance Company of North America, and Cigna Life Insurance Company of New York.
Stock Performance Snapshot
March 09, 2018 - At Friday's closing bell, Cigna's stock slightly climbed 0.79%, ending the trading session at $173.36.
Volume traded for the day: 6.22 million shares, which was above the 3-month average volume of 1.65 million shares.
Stock performance in the past twelve-month period - up 13.90%
After last Friday's close, Cigna's market cap was at $42.41 billion.
Price to Earnings (P/E) ratio was at 17.94.
The stock has a dividend yield of 0.02%.
The stock is part of the Healthcare sector, categorized under the Health Care Plans industry. This sector was up 1.3% at the end of the session.
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