Pharmacy benefit managers Caremark Rx, Nashville, and AdvancePCS, Irving, Texas, said they plan to merge in a deal worth approximately $6 billion. The merger is subject to regulatory approval. If achieved, it would consolidate the pharmacy benefit manager market into three major players, including Express Scripts and Medco Health Solutions. Under terms of the agreement, Caremark would acquire all of AdvancePCS' stock, offering 2.15 shares of Caremark stock for each share of AdvancePCS. Caremark shareholders would own approximately 58% of the combined company. Officials said the merged company, with combined annual revenue of $23 billion, is expected to save $125 million in its first year. The benefit managers have little customer overlap: AdvancePCS has a strong base of managed-care customers, while Caremark has focused on the employer marketplace. Combined, the companies managed more than 600 million prescription claims in the 12 months ended June 30, officials said. -- by Cinda Becker
Caremark to acquire fellow benefit manager
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