Aetna, Inc. and Humana, Inc. said Friday they have entered into an agreement under which Aetna will acquire all outstanding shares of Humana for a combination of cash and stock valued at $37 billion.
“The complementary combination brings together Humana’s growing Medicare Advantage business with Aetna’s diversified portfolio and commercial capabilities to create a company serving the most seniors in the Medicare Advantage program and the second-largest managed care company in the United States,” Aetna and Humana said in a joint statement. “The combined entity will help drive better value and higher-quality health care by reducing administrative costs, leveraging best-in-breed practices from the two companies — including Humana’s chronic-care capabilities that measurably improve health outcomes for larger populations — and enabling the company to better compete with more cost effective products.”
After closing, Aetna will make Louisville the headquarters for its Medicare, Medicaid and TRICARE businesses. Aetna will keep a significant corporate presence in Louisville, the founding home of Humana.
”The transaction is a testament to the accomplishments of Humana associates and an outstanding outcome for our shareholders, who will receive an immediate premium and the opportunity to participate in the growth potential of the combined organization,” Humans President and CEO Bruce Broussard said.
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