Aetna will pay $42.08 per share, or $27.30 in cash and 0.3885 Aetna common shares for each Coventry share. Including the assumption of Coventry’s debt, the transaction is estimated to be worth $7.3 billion.
Pending regulatory review, the acquisition could close in the middle of 2013. The deal is expected to add more than 5 million total members to Aetna’s rolls, including roughly 4 million MA and Medicaid members and 1.5 million Medicare Part D members.
There have been two other major health insurer consolidation deals in the past year. In July, WellPoint agreed to buy Amerigroup for $4.9 billion, and in October 2011, Cigna agreed to purchase HealthSpring for $3.8 billion.
More Articles on Health Insurer Consolidation:
WellPoint to Acquire Amerigroup for $4.9B
Cigna Completes HealthSpring Acquisition
Humana Completes Acquisition of MD Care
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