Walgreens Boots Alliance’s (NASDAQ:WBA) subsidiary Village Practice Management is likely to close a deal to merge with Summit Health soon, according to a Wall Street Journal report. The deal is expected to be worth about $9 billion, including debt. WBA stock was down almost 28% year-to-date, but it has started to rise on the news.
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Village Practice Management, widely known as VillageMD, partners with primary care physicians to provide healthcare management services. Summit Health, formed by a merger between Summit Medical Group and CityMD, caters to all primary and specialty care needs of patients.
Cigna Corp. (NYSE:CI) is likely to invest in the combined company. However, the WSJ report also informed of the possibility of the deal talks failing, as both parties continue to discuss the terms.
The proposed acquisition reflects drug store giant Walgreens’ efforts to diversify in the healthcare space. Last year, Walgreens raised its stake in VillageMD with a view to build 1,000 primary care clinics in its pharmacies by 2027.
What is Walgreens Stock Price Target?
The average WBA stock price target of $37.57 implies upside potential of 1.35%. Walgreens Boots stock has a Hold consensus rating based on seven Holds and one Sell.
