Rockville-based Catalyst Health Solutions (NASDAQ:CHSI), the fast growing prescription drug benefits provider, is in talks with Lisle, Illinois-based SXC Health Solutions (TSE:SXC) for a merger agreement valued at an estimated $4.4 Billion.
SXC Health Solutions would essentially purchase 65 percent of Catalyst Health Solutions for$28.00 in cash and 0.6606 shares of SXC stock for each Catalyst share. The combined value would equal $81.02 for every Catalyst share, a 28 percent premium over the April 17, 2012 closing price of both companies. Catalyst share holders would hold 35 percent of the combined companies.
If the merger is approved Catalyst would move its headquarters from Rockville, Maryland to SXC facilities in Illinois. The joining of both companies would create an entity with annual revenues of approximately $13 billion.
SXC Chairman and Chief Executive Officer Mark Thierer will continue that leadership position if the merger is completed. David T. Blair, Chairman and Chief Executive Officer of Catalyst would only supply ongoing support. The SXC Board of Directors will include two current Catalyst directors.