Aetna to Acquire Humana for $37 Billion, Combined Entity to Drive Consumer-Focused, High-Value Health Care

Aetna, a US-based provider of health insurance and retirement savings products, agreed to acquire Humana, health benefits company headquartered in the US. Aetna is offering $125 in cash, and 0.8375 common shares of Aetna for each Humana share, implying an equity value of the transaction amounts to $34.5bn. The offer price represents a 22.70% premium. Aetna's shareholders will own a 74% stake of the combined company, and Humana's shareholders will hold the remaining 26%. The transaction has total costs of $500m. "This combination will allow us to continue to invest in excellent service for our members and strengthen our partnerships with providers to deliver high-quality care at an affordable price. We have great respect for Humana, their talented team, their culture, and their strong medical management capabilities. We look forward to working with them following the closing, as we enhance our combined portfolio of innovative health care offerings to provide significant benefits to consumers, employers, and providers, and to continue delivering value for our shareholders." Mark T. Bertolini, Aetna chairman, and CEO.