Anthem to Acquire Cigna for $54.2B

Anthem, Inc. will acquire Cigna Corporation in a transaction valued at $54.2 billion.

The deal involves Anthem purchasing all outstanding shares of Cigna in a cash and stock transaction, and Cigna shareholders receiving $103.40 in cash and 0.5152 Anthem common shares for each Cigna common share.

“We are very pleased to announce an agreement that will deliver meaningful value to consumers and shareholders through expanded provider collaboration, enhanced affordability and cost of care management capabilities, and superior innovations that deliver a high quality health care experience for consumers,” says Joseph Swedish, president and CEO of Anthem. “We believe that this transaction will allow us to enhance our competitive position and be better positioned to apply the insights and access of a broad network and dedicated local presence to the health care challenges of the increasingly diverse markets, membership, and communities we serve.”

David M. Cordani, president and CEO of Cigna, says,“Our companies share proud histories and an even brighter future. Going forward our new company will deliver an acceleration of innovative and affordable health and protection benefits solutions that help address our health system’s challenges and provide supplemental insurance protection, and health care security to consumers, their families, and the communities we share with them.”

The transaction is expected to close in the second half of 2016, pending approvals.