Cigna, Express Scripts merger gets official stamp of approval from Department of Justice
Stockholders for both companies greenlighted the merger in late August, and the final approval has been highly anticipated.
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Cigna Corporation and Express Scripts have scored the official stamp of approval from the Antitrust Division of the United States Department of Justice for their pending merger.
"We are pleased that the Department of Justice has cleared our transaction and that we are another step closer to completing our merger and delivering greater affordability, choice and predictability to our customers and clients as a combined company," said David Cordani, president and CEO of Cigna. "The value that we deliver together will help put our society on a far more sustainable path – one that helps health care professionals close gaps in care and supports our customers along their health journey."
"Together, we believe we will be able to do even more to reduce healthcare costs, expand choice, and improve patient outcomes," said Tim Wentworth, president and CEO of Express Scripts. "Today's decision is one more important milestone in our effort to combine two innovative health services leaders into a company that will transform healthcare."
Stockholders for both companies greenlighted the merger in late August, and anticipation for the final approval has been highly anticipated, with reports earlier this month saying it would come in just a matter of weeks.
The transaction remains subject to certain state regulatory approvals and filings required in connection with the transaction. The companies have garnered clearances from departments of insurance in 16 states. Cigna and Express Scripts anticipate the deal will close by year-end 2018, subject to the satisfaction of all closing conditions.
The terms of the deal include $48.75 in cash and 0.2434 shares of stock of the combined company per Express Scripts share, or $54 billion in the aggregate. When the deal is done, Cigna shareholders will own approximately 64 percent of the combined company and Express Scripts shareholders will own approximately 36 percent.
Twitter: @BethJSanborn
Email the writer: beth.sanborn@himssmedia.com
