Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

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

The boards of SXC Health Solutions (SXCI: Quote, SXC.TO) and Catalyst Health Solutions Inc. (CHSI: Quote) 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.

Register
To receive FREE breaking news email alerts for SXC Health Solutions and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
LinkedIn Corp., the world's largest online professional network, said Thursday after the markets closed that it swung to a second quarter loss, hurt by higher costs and expenses even as revenue surged 47%. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue. Kraton Performance Polymers, Inc. (KRA), Wednesday reported second-quarter net income of $11.1 million or $0.33 per share, up from $3.8 million or $0.12 per share last year. Adjusted earnings improved to $0.46 per share from $0.15 per share last year. Revenues for the quarter dropped to $323.8... Organic grocer Whole Foods Market, Inc. said Wednesday after the markets closed that its third quarter profit rose 6.3% from last year, as same-store sales increased 3.9%. The company's quarterly earnings per share also came in above analysts' expectations, but its quarterly sales fell shy of analyst' forecast.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.