SXC to acquire fellow PBM Catalyst in $4.4B deal

SXC Health Solutions Corp. (NASDAQ:SXCI; TSX:SXC) will acquire fellow pharmacy benefit manager Catalyst Health Solutions Inc. (NASDAQ:CHSI) in a cash and stock deal that values Catalyst at $81.02 per share, or about $4.4 billion. The price is a 28% premium to Catalyst's close of $63.54 on Tuesday, before the deal was announced. Catalyst jumped $21.69 (34%) to $85.23 on Wednesday.

Catalyst shareholders will receive $28 in cash and 0.6606 SXC shares per Catalyst share. SXC shareholders will own about 65% of the combined company, and Catalyst shareholders will own the remaining 35%. The companies said the deal will result in about $125 million in annual cost synergies over the first 18-24 months after closing. The combined company is expected to have $13 billion in annual revenue. ...