Aetna To Buy Rival Humana As Insurance Market Consolidates
The merger increases Aetna's share of Medicare Advantage customers. Meanwhile, Bloomberg reports that Cigna's tie-up with Anthem could be next.
The Associated Press:
Aetna To Buy Humana As Health Insurer Landscape Shifts
Aetna aims to spend about $35 billion to buy rival Humana and become the latest health insurer bulking up on government business as the industry adjusts to the federal health care overhaul. The proposed cash-and-stock deal, announced early Friday, would make Aetna a sizeable player in the rapidly growing Medicare Advantage business, which offers privately run versions of the federally funded health care program for the elderly and some people with disabilities. (Murphy, 7/3)
The New York Times:
Aetna Agrees To Acquire Humana For $37 Billion In Cash And Stock
The deal would bring together two of the biggest health insurers in the United States. The combined company would have estimated operating revenue of $115 billion this year and serve more than 33 million people. The proposed merger occurs as the nation’s largest for-profit health insurers seek ways to reduce costs and capitalize on growing opportunities in the government and individual markets. The companies say they will be able to operate more efficiently and negotiate more effectively with large health systems, which have also been consolidating. (Bray and Abelson, 7/3)
Reuters:
Aetna To Buy Humana For $37M In Largest Insurance Deal
Health insurer Aetna Inc on Friday said it would buy smaller rival Humana Inc for about $37 billion in cash and stock, in the largest ever deal in the insurance industry. The combination will push Aetna close to Anthem Inc's No.2 insurer spot by membership, and would nearly triple Aetna's Medicare Advantage business. The deal will face antitrust scrutiny. (Roumeliotis, 7/3)
Bloomberg:
Aetna To Buy Humana In $35B Deal To Expand Medicare
Aetna Inc. agreed to buy rival health insurer Humana Inc., paying about $35 billion in cash and stock for the second-largest U.S. provider of private health plans for the elderly. The transaction, which prices Humana at $230 a share, combines the second- and fifth-largest U.S. health insurers by market size. The deal values Louisville, Kentucky-based Humana at 23 percent more than its closing price on Thursday, and including assumed debt totals about $37 billion. (Serafino, Hammond and Tracer, 7/3)
The Wall Street Journal:
Aetna Agrees To Buy Humana For $34.1 Billion
Aetna Inc. said Friday that it had agreed to buy Humana Inc. for $34.1 billion in cash and stock, following weeks of frenzied merger talks among the largest health insurers. Under the deal, Aetna would pay about $230 a share for Humana, a premium of 23% from Thursday’s close and 29% from the company’s share price before The Wall Street Journal in late May first reported Humana was exploring a sale. Including debt, the companies said, the deal is valued the deal at $37 billion. (Hoffman, Mattioli and Wilde Mathews, 7/3)
USA Today:
Aetna Buys Humana For $37B Amid Record Number Of Health Care Deals
Health care-insurance firm Aetna announced a $37 billion agreement Friday to acquire smaller rival Humana in a deal that continues the rapid consolidation in the U.S. health care industry. In the first six months of the year, a record $296 billion in deals have been announced in the industry, according to Dealogic, a research firm that specializes in mergers and acquisitions. (Hjelmgaard and Riley, 7/3)
CNN Money:
Aetna To Buy Rival Health Insurer Humana For $37 Billion
Aetna (AET) will acquire all outstanding shares of Humana (HUM) for a combination of cash and stock, at roughly $230 per Humana share, according to a joint statement. That's 23% higher than Humana's closing price on Thursday. The new company will have more than 33 million members, and bring in estimated revenue of about $115 billion per year, with 56% coming from government-sponsored programs such as Medicare. (Yan, 6/2)
Bloomberg:
Aetna's Humana Deal Pressures Cigna To Agree On Anthem Takeover
With Aetna Inc. and Humana Inc. pairing off, pressure is mounting on other major health insurers to make their own deals. Cigna Corp.’s tie-up with Anthem Inc. could be the next one on deck. Cigna rebuffed a bid from Anthem last month, and both were said to have been interested in Humana. But after the acquisition announced Friday, their options just got narrower. (Tracer and McLaughlin, 7/6)
