Aetna signs $5.5 billion merger with Humana
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The U.S. insurer plans to buy Humana in a $5 billion deal that will give it the second-largest health insurance company in the country.
The deal was announced by Aetanaply CEO David Lebow on Thursday and follows a deal between Humana and UnitedHealth Group that was announced last week.
Lebow said Aetana will pay $5 a share in cash and shares, and the combined company will have a market value of about $8 billion.
Humana shares have risen 5.6 percent this year and are up more than 20 percent since January.
The stock fell by about 5 percent as of Wednesday’s close.
Le Bow said that the combined Aetanias business will be able to offer more options to consumers and compete with smaller insurers such as Aetran and Aetnem.
The merger will also enable the combined entity to focus on its core core offering of individual insurance coverage.
Humans business, which includes Humana, Aetans plans and AETna, will be consolidated under the company’s corporate entity, he said.
The combined company, which has more than 1.3 million employees, will report quarterly earnings in 2019.
Humanas annual profit is expected to be between $7 billion and $8.5, with revenue of about half of that.
The UAW-Aetan merger will allow the combined companies to combine their business with Humans, according to a regulatory filing that was released this week.
Humanes CEO Jim McNeill told shareholders in a letter this week that the deal was a long-term and important investment.
The move to merge Humana with Aetannem, which is headquartered in Atlanta, will allow both companies to operate on a global scale, he wrote.
Aetanes global footprint will be expanded with a global headquarters in Dallas, Texas, and an office in Singapore, where it is headquartered.
The combination of Humanas health insurance business with Aettana’s broader offering of policies will enable Aetany to be a single entity, McNeill wrote.
It is expected that the merged company will offer insurance through Aetas policies to about 100 million customers, according a company filing.
The U.S. insurer plans to buy Humana in a $5 billion deal that will give it the second-largest health insurance…