Both companies tout merger as integrating to further empower consumers.
Aetna shareholders will get $145.00 per share in cash and .8378 CVS shares for each Aetna share. This values the Aetna shares at $207 per share and approximates that Aetna value at $69B. Aetna has about $8B in debt, making the entire transaction $77B. The deal would create a behemoth company with annual revenue of $240B, second only to Walmart in the U.S.
The deal is expected to close in the second half of 2018, with Aetna being led by current management as a stand-alone unit. The merger will face anti-trust scrutiny, but their portfolio’s are very different.
CVS is actively moving toward healthcare delivery, with pharmacies adding over 1,100 clinics or converting to community health centers, while Aetna is also positioning itself as a healthcare company, not just and insurance company. Integrating and coordinating care at the consumer level could save billions in other higher priced (hospital) costs. Aetna CEO Mark Bertolini was recently quoted at the Healthcare of Tomorrow conference as saying ““If you have to go to the hospital, we have failed you. What if that were the way the system was designed?”
Read more about the deal and potential impacts from Healthcare DIVE
Read what CVS has to say on the CVS website
The Aetna website directs inquisitive visitors to this CVS Health website
See another point of view from The New York Times