Anthem proposes acquisition of Cigna

Anthem Inc. on Saturday announced that it has submitted a non-binding proposal to acquire Cigna Corp. for $184 per share in stock and cash.

The proposed combination would construct a diverse and leading health benefits company. The combined company would produce more than $115 billion in annual revenues, based on the most recent 2015 outlook publicly reported by both companies. Combined, Anthem and Cigna would cover approximately 53 million medical members and strong commercial, government, consumer and specialty franchises.

“This combination is the absolute best strategy for both organizations to maximize the potential and lead the transformation of the health care industry,” Anthem CEO and President Joseph Swedish said. “Together, our companies would rapidly build on each other’s complementary strengths to create a diversified platform that could better capitalize on new opportunities and meaningfully deliver innovative, quality solutions to all of our stakeholders.”

Anthem’s offer values the company at $53.8 billion on an enterprise basis and represents an “unaffected” premium to Cigna’s stockholders of more than 35.4 percent, based on the closing price of Cigna’s shares on May 28.

“In recent discussions with Cigna, we have both recognized the compelling strategic and financial benefits of this combination,” Swedish said. “Not only would Cigna shareholders benefit from the significant up-front premium, they would have the compelling opportunity to participate in the upside potential of the combined company that would boast a broad, diversified portfolio able to seize on opportunities across the health care industry.”