Feb. 8 (UPI) -- CVS Health said Wednesday the company will acquire Oak Street Health in an all-cash $10.6 billion deal.
The deal will see the major pharmacy chain take on Oak Street Health, a network boasting 600 primary care providers and 169 medical centers in 21 U.S. states.
"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."
The companies anticipated that Oak Street Health will expand its network to include more than 300 medical centers by 2026.
"This agreement with CVS Health will accelerate our ability to deliver on our mission and continue improving health outcomes, lowering medical costs, and providing a better patient experience while offering significant value to our shareholders," Oak Street Health CEO Mike Pykosz said of the deal.
Pykosz will remain to lead Oak Street Health, which will become part of CVS Health's recently formed Health Care Delivery organization
"Together with CVS Health, we will have access to greater resources and capabilities to expand the reach of our platform, provide more opportunities for our teammates and, most importantly, make a meaningful difference in the lives of the patients we serve," Pykosz' statement said.
The acquisition has been approved by each company's board but is subject to the approval of a majority of Oak Street Health's stockholders as well as regulatory approval.