Medco to buy PolyMedica for $1.5 billion

NEW YORK Aug 28 (Reuters) - Pharmacy benefit manager Medco Health Solutions Inc. MHS.N said on Tuesday it agreed to buy PolyMedica Corp. PLMD.O for $1.5 billion in cash, in a move to expand its diabetes care services.

Medco said it will pay $53 per share of PolyMedica, a 17 percent premium to PolyMedica's closing price of $45.29 on Monday, on the Nasdaq.

The deal is expected to add slightly to Medco's earnings in 2008.

(Reporting by Euan Rocha)

((Editing by Derek Caney; euan.rocha@reuters.com; 1 646 223 6026)) Keywords: POLYMEDICA MEDCO/TAKEOVER

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