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Catamaran to Acquire Restat

August 1, 2013

LISLE, IL,- Catamaran Corp., a leading provider of pharmacy benefit management (PBM) services and technology today announced it has entered into a definitive agreement to acquire Restat, LLC one of the largest privately held pharmacy benefit managers, for a purchase price of $409.5 million in cash, subject to certain customary post-closing adjustments.

Restat provides prescription claim processing and PBM services for self-funded employers, third-party administrators, workers' compensation plans, health plans, and unions. Restat is expected to contribute approximately $650 million of annual drug spend and $45 million of annual EBITDA. Catamaran expects to generate $20 million in annualized synergies once Restat is fully integrated, which is expected to take 18 months following completion of the transaction. Catamaran expects the transaction to close in the fourth quarter of 2013.

"The acquisition of Restat is a great opportunity for us as its core business aligns perfectly with ours. Restat is the first PBM acquired by Catamaran that is not a current client, and we are excited to combine Catamaran's flexibility with Restat's strengths in service and support," said Mark Thierer, Chairman and CEO of Catamaran. "The acquisition not only adds to our scale, but also provides us the opportunity to bring our full suite of technology and clinical services to Restat's clients, including formulary management, mail order and our specialty pharmacy, BriovaRx."

Catamaran expects transaction costs of approximately $10 million to be incurred in the fourth quarter of 2013. The transaction is subject to customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The purchase price of $409.5 million is expected to be financed with available borrowings under Catamaran's revolving credit facility and cash on hand.

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