CVS Health to buy Aetna for around $69 billionCNBC, Dec 3, 2017, Lauren Hirsch, Bertha Coombs
CVS Health will acquire Aetna for roughly $69 billion in cash and stock in a first-of-its kind deal aimed at fending off challenges in retail and health care, the companies announced on Sunday.
The landmark agreement is one of the year's largest so far. It comes as insurers are under pressure to lower medical costs, and retailers are under attack from new competitors, including an increasingly powerful Amazon. It creates the first health care triple threat, combining CVS's pharmacy and pharmacy benefit manager (PBM) platform with Aetna's insurance business.
According to the agreed terms, Aetna stockholders will receive $207 per share, $145 in cash and $62 in stock. Including debt, the deal is valued at $78 billion.
Upon the closing of the transaction, three of Aetna's directors, including Chairman and CEO Mark Bertolini, will join the CVS board of directors. Aetna will operate as a stand-alone business unit within the larger company, led by members of the insurer's current management team.
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