06:41 AM EST, 03/07/2025 (MT Newswires) -- Walgreens Boots Alliance ( WBA ) shares rose early Friday as the drugstore chain agreed to be acquired and taken private by an affiliate of Sycamore Partners in a deal worth up to $23.7 billion.

Under the terms, shareholders of Walgreens will receive $11.45 a share in cash upon closing of the transaction, according to a late Thursday statement. Stockholders could also receive up to $3 per share in cash from future monetization of the company's debt and equity interests in its primary-care network VillageMD, which includes the Village Medical, Summit Health and CityMD businesses.

The total deal value represents a premium of up to 63% relative to Walgreens' closing share price on Dec. 9, the day before media speculation began about a potential transaction, the company said. Walgreens shares increased 5.6% in the most recent premarket activity.

The deal, which requires approval from Walgreens' investors and clearance from regulators, is expected to complete in the fourth quarter. Walgreens Chairman Stefano Pessina and his holding company, collectively owning about 17% of Walgreens' shares, have agreed to vote in favor of the transaction.

The company will no longer trade publicly once the transaction completes. The deal includes an initial "go-shop" period, set for 35 days, to allow Walgreens to solicit and evaluate alternative acquisition proposals.

"While we are making progress against our ambitious turnaround strategy, meaningful value creation will take time, focus and change that is better managed as a private company," Walgreens Chief Executive Tim Wentworth said in the statement. "We believe this agreement provides shareholders premium cash value, with the ability to benefit from additional value creation going forward from monetization of the VillageMD businesses."

The drugstore chain will maintain its headquarters in the Chicago area and continue to operate under its Walgreens, Boots and portfolio of consumer brands after the deal. "This transaction reflects our confidence in (Walgreens') pharmacy-led model and essential role in driving better outcomes for patients, customers and communities," Sycamore Managing Director Stefan Kaluzny said.

After the deal with Sycamore completes, a committee will work on the process to divest the VillageMD businesses. Walgreens expects to receive all initial proceeds from any potential sale of the businesses, up to $3.4 billion, which represents the amount of debt owed to the company by VillageMD as of Feb. 28.

Walgreens is scheduled to release its fiscal second-quarter results in April.