VillageMD To Acquire Summit Health-CityMD In $8.9 Bln Deal

VillageMD said that it agreed to acquire Summit Health-CityMD, a provider of primary, specialty and urgent care. The transaction is valued at about $8.9 billion with investments from Walgreens Boots Alliance, Inc. (WBA) and an affiliate of Evernorth, a subsidiary of Cigna Corp. (CI).

WBA will invest $3.5 billion through an even mix of debt and equity to support the acquisition of Summit Health-CityMD. WBA will remain the largest and consolidating shareholder of VillageMD with approximately 53 percent ownership.

As a result of the transaction, WBA raised its U.S. Healthcare fiscal year 2025 sales goal to $14.5 billion to $16.0 billion, from the prior outlook of $11.0 billion to $12.0 billion.

WBA's U.S. Healthcare segment is now expected to achieve positive adjusted EBITDA by the end of fiscal year 2023.

The transaction will be slightly accretive to WBA adjusted earnings per share in fiscal year 2023, and accretive by $0.07 to $0.11 in fiscal year 2024 and increasing thereafter.

The transaction is expected to close in the first quarter of calendar 2023.

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