Walgreen to Buy Drugstore.com

Internet retailer Drugstore.com on Thursday agreed to be sold to national drugstore chain Walgreen Co. for $429 million.

EXPANDING ONLINE: The entrance to a Walgreens store is seen in Homestead, Fla. Pharmacy chain Walgreen Co. agreed to purchase online retailer Drugstore.com on Thursday. Joe Raedle/Getty Images

NEW YORK—Internet retailer Drugstore.com on Thursday agreed to be sold to national drugstore chain Walgreen Co. for $429 million.

Walgreen, which operates the nation’s biggest pharmacy Walgreens, will pay $429 million in the all-cash deal, at $3.80 per share and a 112 percent premium over Drugstore.com’s closing stock price Wednesday. The news sent shares of Drugstore.com soaring on Thursday, as its common stock increased 113 percent to $3.82.

The acquisition immediately gives Walgreen an advantage on the Web against its rivals, such as CVS Caremark Corp. and Rite Aid Corp. as it gains Drugstore.com’s 3 million customers. The company will also gain access to Drugstore.com’s sister sites Beauty.com, VisionDirect.com, and SkinStore.com.