VillageMD to buy Summit Health-CityMD in an $8.9 billion deal, including $3.5 billion Walgreens investment
VillageMD announced Monday and agreement to buy urgent care provider Summit Health-CityMD in a deal valued at $8.9 billion, with help from investments from Walgreens Boots Alliance Inc. and Cigna Corp affiliate Evernorth. As part of the deal, drugstore and health care services company Walgreens will invest $3.5 billion worth of equity and debt, and will remain the largest shareholder of VillageMD with 53% ownership. Walgreens said the deal, which is anticipated to close in the first quarter of 2023, will add "slightly" to adjusted 2023 earnings per share, and add 7 cents to 11 cents to adjusted EPS in 2024 and after. And Cigna's Evernorth will be a minority owner in VillageMD. Walgreens' stock jumped 5.2% in morning trading, enough to pace the Dow Jones Industrial Average's gainers, and Cigna shares tacked on 0.1%.
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