Evolent Health stock jumps after report of possible Walgreens takeover
Evolent Health CEO Frank Williams, center, rings a ceremonial bell to celebrate the first trade during his company’s IPO, on the floor of the New York Stock Exchange, Friday, June 5, 2015.
AP shares jumped 18% Wednesday afternoon after Bloomberg announced that the company was looking to buy the IT-services provider.| AP
Evolent shares reached a 52-week peak of $31.88, however, they have since fallen back to $29, an increase of over 7%. Walgreens shares rose by less than 1 percent on the report.
Evolent Health was created in 2011. It went public only four years later. But, the company has come under intense pressure from Engaged Capital for sale. Evolent Health’s stock has increased 82% in the past year to reach $2.56 billion.
The potential Walgreens takeover will give Walgreens an advantage over its competitors in the space of drugstores. Walgreens’ retail store is seeing more sales online and has seen basic products like makeup shift online. Rival CVS bought insurance provider Aetna in 2018 and has since leaned more into providing health-care services.
Earlier this year, former Starbucks executive Roz Brewer took the reins at Walgreens. The company revealed that it was investing nearly $1 billion into specialty pharmacy Shields Health Solutions on Sept. 21.
CNBC reached Walgreens and Evolent Health for comments but they did not respond immediately.