CVS pharmacy sign (Photo: AP)

CVS Health Corp. agreed to buy Oak Street Health Inc. in a $10.6 billion deal that further integrates primary care into the health-care conglomerate, positioning it to take advantage of a shift in how medical care is paid for.

The drugstore chain is paying $39 a share in cash for the Chicago-based company at an equity value of $9.47 billion, according to a statement Wednesday, confirming an earlier report. The deal will be funded through available resources and existing financing capacity, CVS said, and is expected to close this year. CVS shares rose 4.1% at 11:42 a.m. in New York, while Oak Street gained 4.4%.

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