Walgreen (WAG) to Acquire Drugstore.com. (DSCM)

Although Walgreen (NYSE:WAG) was hit hard for only modestly beating expectations in its latest quarterly report, it is trading up today after the retailer announced they've made a bid for drugstore.com (NASDAQ:DSCM), which was busy soaring over 100 percent on the news today.

Walgreen said they made an offer of $429 million in cash for the company, according to Internet Retailer magazine.

The offer is more than a 100% premium to the what the stock closed at on Wednesday, and drugstore.com rapidly traded up to the $3.80 a share offer price, as the board unanimously approved the deal. Walgreen said it expects to close the acquisition in June.

Drugstore.com operates a website, but also owns Beauty.com, SkinStore.com and VisionDirect.com.

Drugstore.com was trading at $3.775, up $1.985, or 110.89 percent, as of 12:10 PM EDT. Walgreen was trading at $40.37, gaining $0.54, or 1.36 percent.