Catamaran acquiring rival pharmacy benefit manager

Pharmacy benefit manager Catamaran Corp. on Thursday said it has agreed to acquire competitor Healthcare Solutions Inc. for $405 million in cash.

Schaumburg, Illinois-based Catamaran, the nation's fourth-largest PBM based on prescription volume, handles pharmacy benefits for group health and workers compensation plans, while Duluth, Georgia-based Healthcare Solutions specializes in workers comp and auto liability claims. The acquisition is expected to close in the second quarter of 2015, Catamaran said in a statement.

“The acquisition of Healthcare Solutions provides a complementary business platform to further expand our strong presence in the workers compensation market,” Catamaran Chairman and CEO Mark Thierer said in the statement. “In addition, Healthcare Solutions' long-standing and established relationships with insurance carriers and (third-party administrators) provide an opportunity to bring Catamaran's full suite of technology and services to Healthcare Solutions' clients.”

Catamaran was formed in 2012 when Lisle, Illinois-based SXC Health Solutions Corp. bought Rockville, Maryland-based Catalyst Health Solutions Inc. for $4.4 billion and merged under the Catamaran banner. The company reported $21.6 billion in revenue for 2014, up 46% from 2013 revenues.