ST. LOUIS, Mo. -A deal has been reached for U.S. health insurer Cigna Corp. to buy St. Louis County-based Express Scripts Holding Co. in a $67 billion deal. The sale was approved by the board of directors of both companies.
The deal includes a combination of cash and stocks. Cigna also assumes $15 billion dollars of Express Scripts debt. Cigna shareholders will own about 64 percent of the combined company, and Express Scripts shareholders will own about 36 percent.
The combined company will be called Cigna. Cigna’s headquarters in Bloomfield, Connecticut will become the headquarters for the combined company. Express Scripts will retain a headquarters in St. Louis.
The current president and CEO of Cigna, David M. Cordani, will continue in that role of the combined company. The current president and CEO of Express Scripts, Tim Wentworth, will become the president of Express Scripts.
Express Scripts is a pharmacy benefit manager serving as a middleman to negotiate discounts with drug makers. Its headquarters has been on the University of Missouri-St. Louis campus since 2007.
Our partners at the St. Louis Post-Dispatch report Express Scripts has about 6,000 employees in the St. Louis area and more than 26,000 employees worldwide.
At closing, the combined company will invest $200 million in its charitable foundation to support the communities in which it operates.
The deal is expected to be completed by the end of 2018. Until then, the two companies will continue to operate independently.