By Colin Kellaher

AmerisourceBergen Corp. on Wednesday said it agreed to buy the majority of Walgreens Boots Alliance Inc.'s Alliance Healthcare businesses for about $6.5 billion.

Amerisource, a Valley Forge, Pa., provider of pharmaceutical products, said it would pay $6.275 billion in cash and issue 2 million shares to Walgreens in exchange for European pharmaceutical wholesaler Alliance.

Amerisource said the deal extends its distribution presence and its global platform of higher-margin manufacturer services. Walgreens, based in Deerfield, Ill., said it plans to increase its focus on expanding its core retail pharmacy businesses.

Amerisource and Walgreens also agreed to extend and expand their U.S. commercial agreements through 2029. Walgreens currently owns a roughly 28% stake in Amerisource, according to FactSet.

Amerisource said it will fund the transaction, which it expects to complete by the end of fiscal 2021, with cash on hand and new debt financing.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

01-06-21 0736ET