Drugstore chain Rite Aid will acquire EnvisionRx, a full-service pharmacy benefit management (PBM) company, for $2 billion. Rite Aid will pay approximately $1.8 billion in cash and $200 million in company stock, amounting to 27.9 million shares.
The transaction is expected to close by September 2015 and is subject to regulatory approvals and other customary closing conditions. With the purchase, EnvisionRx will provide Rite Aid with a Medicare prescription drug plan that covers 400,000 people, according to an AP report.
EnvisionRx projects to earn $5 billion in revenue during 2015. The company provides both transparent and traditional PBM options through its EnvisionRx and MedTrak PBMs.
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The acquisition will allow Rite Aid to enter the PBM market and leverage the multitude of offerings from EnvisionRx, including:
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Fully integrated mail-order and specialty pharmacy services through Orchard Pharmaceutical Services;
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Access to a cash pay infertility discount drug program via Design Rx;
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An innovative claims adjudication software platform in Laker Software; and
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A national Medicare Part D prescription drug plan through Envision Insurance Company’s EnvisionRx Plus product offering.
“The acquisition of EnvisionRx meaningfully expands our health and wellness offerings, enhancing our ability to provide a higher level of care to the patients and communities we serve,” said John Standley, Chairman and CEO at Rite Aid. “With the addition of EnvisionRx, we will create a compelling pharmacy offering across retail, specialty and mail-order channels, enabling us to deliver cost-effective solutions to employers and health plans while driving growth and creating long-term value for our shareholders. We also look forward to welcoming EnvisionRx’s proven management team and talented associates to Rite Aid.”
