- Tivity Health (NASDAQ:TVTY) strikes an agreement to acquire Nutrisystem (NASDAQ:NTRI) in a cash and stock deal.
- Under the terms of the deal, Nutrisystem shareholders will receive $38.75 per share in cash and 0.2141 Tivity Health shares for each share of Nutrisystem held.
- The transaction values Nutrisystem at an enterprise value of $1.3B and an equity value of $1.4B, or approximately $47.00 per share.
- Boards of both companies have approved the merger.
- "The combined company will be unique in offering, at scale, an integrated portfolio of fitness, nutrition and social engagement solutions to support overall health and wellness. Through this expanded portfolio, Tivity Health will be better positioned to address weight management – a major factor contributing to many chronic diseases. The diversification of Tivity Health's portfolio and increased scale will benefit all the company's stakeholders – including health plans, fitness partners, members and consumers – as these offerings support healthier lifestyles and can lower medical costs."
- The merger is expected to bring double digit accretion to Tivity Health's adjusted EPS in 2020 and beyond, as well as significant potential for value creation with expected annual cost synergies of ~$30M to $35M.
- Source: Press Release
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