Walgreens affiliate in $9bn deal for doctors’ group Summit Health
VillageMD, an affiliate of Walgreens Boots Alliance, has agreed to acquire physicians’ group and urgent care provider Summit Health in a deal valued at almost $9bn, adding to a wave of consolidation in the US healthcare sector.
The transaction, which includes debt, will combine VillageMD with the operator of CityMD, whose urgent care centres are located throughout the north-east US. The entity will have more than 680 provider locations, the two companies said.
Walgreens has agreed to invest $3.5bn as part of the transaction through a mix of debt and equity, and will remain VillageMD’s largest shareholder with a 53 per cent stake in the business. Evernorth, a subsidiary of health insurance company Cigna, has invested an undisclosed amount and will be a minority owner in VillageMD.
This story originally appeared on: Financial Times - Author:Ortenca Aliaj
