Anthem to acquire Cigna in $54.2B deal
In the largest-ever acquisition of a health insurer, Anthem announced today it had agreed to purchase Cigna in a deal valued at $54.2 billion, including debt.
The New York Times reported a combined Anthem-Cigna would have estimated revenue of about $115 billion and serve more than 53 million people with health insurance coverage.
Based in Indianapolis, Anthem [NYSE: ANTM] operates in Maine and 13 other states and has a strong presence in offering individual coverage and insurance to workers of small businesses. It also has grown its government business, which includes Medicare, Medicaid and coverage of federal employees, according to Modern Healthcare.
Cigna [NYSE: CI], based in Bloomfield, Conn., also operates in Maine and is best known for offering plans through employers and selling other kinds of insurance such as dental and disability, the newspaper reported.
The New York Times reported that Anthem has agreed to pay $188 a share in cash and stock, which the newspaper said represents a 38.4% increase over Cigna’s closing price on May 28, prior to news of Anthem’s interest in purchasing it.
The transaction, which is subject to shareholder and regulatory approval, is expected to close in the second half of 2016, according to the newspaper.
Anthem is currently the nation's second-largest health insurer, while Cigna ranks fourth in terms of enrollment, according to Modern Healthcare.
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