Quick Facts
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

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

4/18/2012 6:12 AM ET

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

Quick Facts

Editors Pick
New home sales in the U.S. unexpectedly showed a substantial decrease in the month of March, according to a report released by the Commerce Department on Wednesday, with sales falling to their lowest level in eight months. The report said new home sales plunged 14.5 percent to an annual rate of 384,000 in March from the revised February rate of 449,000. Euro area's government deficit shrunk last year to match the EU target, while public debt rose and remained above the official ceiling, figures from the Eurostat showed Wednesday. The shrunken government deficits suggest that euro area might be leaving behind the worst troubles of the financial crisis,... Following the strong upward move seen over the past few sessions, stocks may give back some ground in early trading on Wednesday. The major index futures are currently pointing to a modestly lower open for the markets, with the Dow futures down by 6 points.
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.