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
Amazon.com, Inc. said Thursday that its second quarter loss widened from last year, as operating expenses outpaced revenue growth amid heavy spending on new technology and contents. The company's quarterly loss per share was also wider than what analysts expected, but is quarterly sales came in line with analysts' forecast. The company also forecast an operating loss for the current quarter. After failing to sustain an initial upward move, stocks showed a lack of direction throughout much of the trading day on Thursday. The major averages eventually closed nearly unchanged, turning in a mixed performance for the second straight day. New home sales in the U.S. showed a notable decrease in the month of June, according to a report released by the Commerce Department on Thursday, with the steep drop offsetting the jump seen in the previous month.
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.