Announces unit OptumRx to merge with Catamaran in a $12.8B deal
OptumRx and Catamaran Corporation services and technology solutions, announced today they have agreed to combine. OptumRx is UnitedHealth Groups [NYSE:UNH] free-standing pharmacy care services business.
The agreement calls for the acquisition of Catamarans outstanding common stock for $61.50 per share in cash. The transaction is expected to close during the fourth quarter of 2015, subject to Catamaran shareholders approval, regulatory approvals and other customary closing conditions. The combination diversifies OptumRxs customer and business mix, while accelerating its technology leadership and flexible service offerings.
The acquisition is expected to be accretive to UnitedHealth Groups net earnings in the area of $0.30 per share in 2016. UnitedHealth Group plans to finance the acquisition from existing cash resources and new debt. The company affirmed its $6.00 to $6.25 per share earnings outlook assuming the absorption of all merger costs, the ongoing commitment to advance its dividend policy as planned, and a continued but moderated level of share repurchase.
Upon closing, Mark Thierer, Catamarans chairman and chief executive officer, will serve as chief executive officer of OptumRx and Timothy Wicks, the current chief executive officer of OptumRx, will become president. Jeff Park, who currently serves Catamaran as executive vice president, Operations, will become the chief operating officer for OptumRx. Jeffrey Grosklags, currently the chief financial officer of OptumRx, will continue in that role.