Anthem to acquire Cigna in $54.2B deal, largest ever in health insurance
Anthem will acquire Cigna for $188 per share, the health insurance companies said Friday. The deal, including Cigna’s debt, will be worth $54.2 billion. It is the largest-ever health insurance transaction and part of the mass-scale merger race that is fundamentally changing the industry and fueling concerns over costs and competition.
The definitive agreement comes a little more than a month after Anthem went public with an offer of $184 per share, which Cigna rejected. The two sides had sharp disagreements over who would lead the combined company, which will have $115 billion of revenue, and if Anthem would receive approval from its sponsor, the Blue Cross and Blue Shield Association.
“This transaction better serves us to benefit the evolving healthcare market,” Anthem CEO Joseph Swedish said on a call Friday morning. Swedish will serve as Anthem’s chairman and CEO, and Cigna CEO David Cordani will become Anthem’s president and chief operating officer. Swedish will reduce his role as Anthem’s chairman after two years. Executives did not say if Cordani would succeed Swedish as the top executive.
Read the full article: Modern Healthcare