© Reuters. CVS Health (CVS) to buy Oak Street Health (OSH) for $10.5 billion – WSJ
By Senad Karaahmetovic
CVS Health (NYSE:) is close to agreeing on a deal to acquire Oak Street Health (NYSE:) for roughly $10.5 billion including debt, The Wall Street Journal reported today.
The two companies are discussing a deal based on the price of $39 for each OSH share, which is a premium of around 50% relative to yesterday’s closing price of $25.96. CVS could report the deal on Wednesday when it is due to report earnings.
If agreed, the Oak Street deal would mark another multi-billion acquisition by CVS, which spent $8B to buy home provider Signify Health (NYSE:) last year. Earlier, CVS’ CEO Karen Lynch indicated that the healthcare giant is looking to expand its presence in primary care and home-based care.
Oak Street stock already soared in early January after Bloomberg News reported that CVS Health is in talks to acquire the company. Shares of the company are up about 35% in premarket Tuesday.
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