CVS Widens Reach With $10.6 Billion Deal for Oak Street (2)

CVS Health Corp. agreed to buy Oak Street Health Inc. for an enterprise value of $10.6 billion, pushing deeper into patient primary care with its second major acquisition in the space in as many years.

The drugstore chain is paying $39 a share in cash for the Chicago-based company at an equity value of $9.47 billion, according to an announcement Wednesday, confirming an earlier Bloomberg News report. The deal will be funded through available resources and existing financing capacity, CVS said, and is expected to close this year.

Amid a highly competitive environment for its longstanding pharmacy business, Woonsocket, ...