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
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
