CVS Health Corp (CVS:US) confirmed it will acquire Oak Street Health (OSH:US) for $39 per share in an all-cash transaction. The confirmation comes after the Wall Street Journal reported earlier this week that two companies are in advanced talks.

The deal values Oak Street, which offers primary care services, at $10.6 billion on enterprise value and $9.47 billion on equity value. Shares of Oak Street already rallied on the WSJ report, before adding a couple of percent more on the deal confirmation.

"Combining Oak Street Health's platform with CVS Health's unmatched reach will create the premier value-based primary care solution," said CVS Health President and CEO Karen S. Lynch. "Enhancing our value-based offerings is core to our strategy as we continue to redefine how people access and experience care that is more affordable, convenient and connected."

Moreover, CVS also reported better-than-expected results for its fourth quarter. Revenue soared 9.5% to $83.8 billion, while the adjusted EPS also topped analyst expectations. The company said it generated $16.2 billion in cash flow from operations in 2022, out of which $4.1 billion is used to repay debt.

“2022 was a year of progress, and we continue to build on that momentum with bold moves that will improve the health care experience," Lynch added.

The announcements come after several members of Congress and Senate reported they sold some CVS shares. Most recently, Senator Tom Carper was selling CVS stock on January 11 when it closed at $89.75, about 4% above current prices.

Moreover, Congressman Tom Suozzi sold $15,000 - $50,000 worth of CVS Health shares in late November when they were trading at around $100 a share. His colleague Ro Khanna was selling at similar levels earlier in the month.