The Wall Street Journal: Walgreens subsidiary nears $9 billion deal to merge with Summit Health

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A unit of Walgreens Boots Alliance Inc. WBA, +3.72%  is nearing a deal to combine with a big owner of medical practices and urgent-care centers in a transaction worth roughly $9 billion including debt, according to people familiar with the matter, the latest in a string of acquisitions by big consumer-focused companies aiming to delve deeper into medical care.

The drugstore giant’s primary-care-center subsidiary, Village Practice Management, would combine with Summit Health, the parent company of CityMD urgent-care centers, in an agreement that could be reached as early as Monday, the people said.

Health insurer Cigna Corp. CI, -0.65%  is expected to invest in the combined company, the people said.

There is no guarantee the parties will reach a deal, the people cautioned, noting that they are still hammering out details of an agreement.

Summit Health, which is backed by private-equity firm Warburg Pincus LLC, has more than 370 locations in New York, New Jersey, Connecticut, Pennsylvania and Central Oregon, according to the company’s website. Current and former physicians also own a large interest in the business.

An expanded version of this report appears on WSJ.com.

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This article was originally published by Marketwatch.com. Read the original article here.

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