Aetna to acquire Humana for $37 billion - WDRB 41 Louisville News

Aetna to acquire Humana for $37 billion

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LOUISVILLE, Ky. (WDRB) - Aetna has reached a $37 billion deal to buy Humana.

A news release from the two companies says Aetna will acquire all outstanding shares of Humana for a combination of cash and stock valued at approximately $230 per share. The deal was unanimously approved by the board of directors of each company. Humana stockholders will receive $125.00 in cash and 0.8375 Aetna common shares for each Humana share.

After closing Aetna will make Louisville the headquarters for its Medicare, Medicaid and TRICARE businesses, and will maintain a significant corporate presence in Louisville, according to the release.

 "The acquisition of Humana aligns two great companies and will significantly advance our strategy of more effectively serving members in a rapidly changing health care industry," said Mark T. Bertolini, Aetna chairman and CEO. "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."

"Aetna and Humana share a strong commitment to improving the health and well-being of consumers, whatever their needs and wherever they are on their lifelong health journey," said Bruce D. Broussard, president and CEO of Humana. "Through the use of technology and integrated services to simplify the consumer experience, the combined entity will be even more effective in meeting the health needs of many more people -- especially people with chronic conditions, who will benefit from Humana's home health, pharmacy management, and data analytics programs. The transaction is a testament to the accomplishments of Humana associates and an outstanding outcome for our shareholders, who will receive an immediate premium and the opportunity to participate in the growth potential of the combined organization."

Mayor Greg Fischer says he is fighting to grow Humana-Aetna's presence in Louisville.

"My team and I have been in regular contact with company leaders to understand the terms of the merger and what it means for our city and state," Fischer said in a statement. "Our goal is to keep all existing jobs in Louisville and grow even more. Louisville has a depth of human talent in this important business sector and we will demostrate that depth to the new owners."

Aetna and Humana will hold a conference call on Monday, July 6th to further discuss the deal.  To read the entire release from the company about the acquisition, CLICK HERE

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