Express Scripts Inc will buy rival Medco Health Solutions Inc for $29.1 billion in cash and stock to create a powerhouse in managing prescription drug benefits in the United States, the companies said on Thursday.
Express Scripts will pay $71.36 per Medco share, a 28 percent premium to its adjusted closing price on Wednesday. Medco shareholders will receive $28.80 in cash and 0.81 shares for each Medco share they own, according to the terms of the deal.
The deal between two of the "Big 3" pharmacy benefit managers would create a clear industry leader and could encounter antitrust hurdles. It also comes as Medco has lost two key accounts and said on Thursday that a third - with insurer UnitedHealth Group Inc - would not be renewed.