CVS Acquires Unit of Universal American for $1.25B

CVS Caremark said Friday that it agreed to buy the Medicare Part D business of Universal American , a Medicare Prescription Drug Plan sponsor based in Rye Brook, N.Y., for about $1.25 billion. After payment of other transaction related expenses, Universal American shareholders are expected to receive approximately $12.80 a share to $13 a share, the companies said. The acquisition will more than double the size of CVS Caremark's Medicare Part D program, the Woonsocket, R.I.-based CVS said, adding that the transaction will add to per-share profit in its first full year.