Here are five things to know about the transaction.
1. Under the deal, Humana stockholders will receive $125 in cash and 0.8375 Aetna common shares for each Humana share.
2. Aetna will finance the cash portion of the transaction with a combination of cash on hand and by issuing about $16 billion of new term loans, debt and commercial paper.
3. The combined company will have more than 33 million medical members, based on memberships as of March 31.
4. The transaction is expected to close in the second half of 2016. Aetna will make Louisville, Ky., the headquarters for its Medicare, Medicaid and TRICARE businesses after the deal closes.
5. Aetna Chairman and CEO Mark Bertolini will serve as chairman and CEO of the combined company. “We have great respect for Humana, their talented team, their culture and their strong medical management capabilities,” said Mr. Bertolini. “We look forward to working with them following the closing, as we enhance our combined portfolio of innovative healthcare offerings to provide significant benefits to consumers, employers and providers, and to continue delivering value for our shareholders.”
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