Walgreen Company is buying New York-based drugstore chain Duane Reade. Deerfield-based Walgreens is expected to pay more than $1 billion  for the prevalent New York City company.

Walgreens only has about 70 New York City metro area drugstores. That pales in comparison to Duane Reade’s 257 stores in the same region.

Walgreens CEO Greg Wasson says the purchase will give his company an immediate presence in New York.

WASSON: Site development is complex and time consuming, especially in urban areas. And one thing we’ve learned is that it would take many years of organic growth to reach the store count that this acquisition brings us.

Duane Reade will continue to operate under its own name after the transaction is complete.

In a written statement, Walgreens President Greg Wasson says, “Duane Reade is a compelling strategic acquisition that will immediately provide Walgreens with a leading position in the largest drugstore market in the U.S. In addition, Duane Reade’s recent initiatives in urban retailing, customer loyalty and private brand products support and accelerate Walgreens strategy to enhance the customer experience in our network of more than 7,100 stores across the country.”

Walgreens plans to retain many of Duane Reade’s employees and senior management team. Walgreens officials expect the deal to close by the end of August.