Caremark Rx Inc. to purchase AdvancePCS Inc. for 0.35 times revenue

The Deal: Caremark Rx Inc. has agreed to acquire AdvancePCS Inc. in a cash and stock transaction. Under the terms of the agreement, AdvancePCS shareholders will receive the equivalent of 2.15 shares of Caremark for each share of AdvancePCS Inc. Ninety percent will be paid in Caremark stock, with the remaining ten percent paid in cash. Caremark will also assume $400 million in debt, bringing the total value of the deal to nearly $6 billion. The deal values AdvancePCS at approximately $54 per share. The deal still requires regulatory approval.