logo
Share SHARE
FONT-SIZE Plus   Neg

SXC Health, Catalyst Health To Merge In $4.4 Bln Worth Cash-stock Deal

The boards of SXC Health Solutions (SXCI, SXC.TO) and Catalyst Health Solutions Inc. (CHSI) have unanimously approved a definitive merger deal, under which both companies would combine in a cash and stock transaction valued at about $4.4 billion. Pursuant to the deal, Catalyst shareholders would receive $28.00 cash and 0.6606 SXC shares for each Catalyst share, impling a purchase price of $81.02 per Catalyst share and a premium of nearly 28% based on the closing stock prices of SXC and Catalyst on April 17, 2012.

The transaction, which may close in the second half of 2012, is expected to be highly accretive to SXC's non-GAAP earnings in 2013, excluding transaction-related amortization expected to be some $200 million in the first 12 months after closing. The combined company expects to achieve about $125 million of annual cost synergies over the first 18 to 24 months after closing through improved scale and operating leverage. Also, the combined company is anticipated to incur nearly $40-45 million of transition expenses to achieve these annual synergies.

SXC's Chairman and Chief Executive, Mark Thierer, would serve as Chairman and CEO of the combined organization, and Jeff Park would be its EVP and Chief Financial Officer.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
French car maker Renault SA reported Friday higher profit in its fiscal 2015, with strong growth in automotive profit and revenues. The company announced higher dividend. Looking ahead, for fiscal 2016, Renault expects to increase group revenues at constant exchange rates and improve group operating margin. Shares of Rolls-Royce Holdings Plc were gaining around 13 percent in the morning trading in London after the engine maker reported more-than doubled profit in its fiscal year 2015, with lower one-time items. Underlying earnings were hurt by weakness in Marine markets. Further, the company halved its dividends, and still expects lower revenues next year. German steel giant ThyssenKrupp AG reported a loss in its first quarter, compared to last year's profit as sales and orders were hurt by sharp deterioration in materials businesses. The company said its overall performance in the first quarter was within its full-year forecast corridor. Looking ahead, the company continues to expect higher net income and flat sales for fiscal 2016.
comments powered by Disqus
Follow RTT