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Walgreens weighing deal to buy Evolent Health - Bloomberg News

Credit: REUTERS/EILEEN MESLAR

Pharmacy chain Walgreens Boots Alliance Inc is considering an acquisition of healthcare IT firm Evolent Health Inc, Bloomberg News reported on Wednesday, citing people familiar with the matter.

Adds background, Evolent response; updates share movement

Sept 29 (Reuters) - Pharmacy chain Walgreens Boots Alliance Inc WBA.O is considering an acquisition of healthcare IT firm Evolent Health Inc EVH.N, Bloomberg News reported on Wednesday, citing people familiar with the matter.

Shares of Arlington, Virginia-based Evolent rose as much as 18% after the report, before paring some gains to trade up nearly 9%.

The talks are ongoing and there is no certainty Walgreens will move forward with an offer to buy the company, according to the report.

Evolent declined to comment, while Walgreens did not immediately respond to a Reuters request for comment.

Walgreens previously said it was focused on making strategic investments to build on its core pharmacy business. It made a $970 million investment last week to acquire a majority stake in specialty pharmacy company Shields Health Solutions.

Evolent had a market value of $2.36 billion, based on Tuesday's close. The company reached an agreement with activist investor Engaged Capital last year to appoint a new director and create a new board committee.

(Reporting by Manas Mishra in Bengaluru; Editing by Maju Samuel and Shounak Dasgupta)

((Manas.Mishra@thomsonreuters.com; www.twitter.com/Manasmishra24; within U.S. +1 646 223 8780, outside U.S. +91 806749 2709;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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