CVS Health to acquire Oak Street Health for $10.6bn

• Following the close of the transaction, Mike Pykosz will continue to lead Oak Street Health, which will become part of CVS Health’s recently formed Health Care Delivery organization
• CVS Health and Oak Street Health anticipate that the transaction will close in 2023
• Credit Suisse Securities (USA) LLC and Lazard Ltd are serving as co-financial advisors to CVS Health while Centerview Partners is serving as financial advisor for Oak Street Health

CVS Health has agreed to acquire Oak Street Health, which is backed by Newlight Partners LP and General Atlantic LLC, for $39 per share or about $10.6 billion.

CVS Health is a health solutions company and Oak Street Health is a network of value-based primary care centers for adults on Medicare.

“Combining Oak Street Health’s platform with CVS Health’s unmatched reach will create the premier value-based primary care solution,” said CVS Health President and CEO Karen S. Lynch, in a statement. “Enhancing our value-based offerings is core to our strategy as we continue to redefine how people access and experience care that is more affordable, convenient and connected.”

Oak Street Health employs approximately 600 primary care providers and has 169 medical centers across 21 states.

Following the close of the transaction, Mike Pykosz will continue to lead Oak Street Health, which will become part of CVS Health’s recently formed Health Care Delivery organization.

CVS Health and Oak Street Health anticipate that the transaction will close in 2023.

Credit Suisse Securities (USA) LLC and Lazard Ltd are serving as co-financial advisors to CVS Health. CVS Health was advised on legal matters by Shearman & Sterling LLP, Dechert LLP and McDermott Will & Emery. Centerview Partners is serving as financial advisor for Oak Street Health and Kirkland & Ellis LLP is acting as Oak Street Health’s legal advisor.

Oak Street Health was founded in 2012.