CVS Health and Aetna Inc. on Sunday announced the execution of a definitive merger agreement under which CVS Health will acquire all outstanding shares of Aetna for a 69-billion-U.S.-dollar combination of cash and stock.
According to the statement released late Sunday, under the terms of the merger agreement, which has been unanimously approved by the boards of directors of both companies, Aetna shareholders will receive 145 U.S. dollars per share in cash and 0.8378 CVS share for each Aetna share.
The transaction values Aetna at approximately 207 dollars per share or approximately 69 billion dollars. With inclusion of the assumption of Aetna's debt, the total value of the transaction is 77 billion dollars.
Upon the closing of the transaction, Aetna shareholders will own approximately 22 percent of the combined company and CVS Health shareholders will own approximately 78 percent.
"This combination brings together the expertise of two great companies to remake the consumer health care experience. With the analytics of Aetna and CVS Health's human touch, we will create a health care platform built around individuals ... that is easier to use and less expensive for consumers," President and Chief Executive Officer of CVS Health Larry J. Merlo said in the statement.
"This is the next step in our journey, positioning the combined company to dramatically further empower consumers. Together with CVS Health, we will better understand our members' health goals, guide them through the health care system and help them achieve their best health," said Mark T. Bertolini, Aetna chairman and CEO.
The transaction is expected to close in the second half of 2018. It is subject to approval by CVS Health and Aetna shareholders, regulatory approvals and other customary closing conditions.
Analysts said that the combined company could leverage massive amounts of data from both Aetna's medical claims and CVS's vast number of stores to consumers, which would enhance the new company's ability in managing health care.
CVS is one of the biggest U.S. pharmacy chains serving more than one million patients per year, which has 9,700 retail locations and more than 1,100 walk-in medical clinics.
Aetna is one of the nation's leading diversified health care benefits companies, serving an estimated 44.6 million people as of Sept. 30, and offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services.
According to the statement released late Sunday, under the terms of the merger agreement, which has been unanimously approved by the boards of directors of both companies, Aetna shareholders will receive 145 U.S. dollars per share in cash and 0.8378 CVS share for each Aetna share.
The transaction values Aetna at approximately 207 dollars per share or approximately 69 billion dollars. With inclusion of the assumption of Aetna's debt, the total value of the transaction is 77 billion dollars.
Upon the closing of the transaction, Aetna shareholders will own approximately 22 percent of the combined company and CVS Health shareholders will own approximately 78 percent.
"This combination brings together the expertise of two great companies to remake the consumer health care experience. With the analytics of Aetna and CVS Health's human touch, we will create a health care platform built around individuals ... that is easier to use and less expensive for consumers," President and Chief Executive Officer of CVS Health Larry J. Merlo said in the statement.
"This is the next step in our journey, positioning the combined company to dramatically further empower consumers. Together with CVS Health, we will better understand our members' health goals, guide them through the health care system and help them achieve their best health," said Mark T. Bertolini, Aetna chairman and CEO.
The transaction is expected to close in the second half of 2018. It is subject to approval by CVS Health and Aetna shareholders, regulatory approvals and other customary closing conditions.
Analysts said that the combined company could leverage massive amounts of data from both Aetna's medical claims and CVS's vast number of stores to consumers, which would enhance the new company's ability in managing health care.
CVS is one of the biggest U.S. pharmacy chains serving more than one million patients per year, which has 9,700 retail locations and more than 1,100 walk-in medical clinics.
Aetna is one of the nation's leading diversified health care benefits companies, serving an estimated 44.6 million people as of Sept. 30, and offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services.
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