Home >> News >> Anthem to acquire Cigna Corporation in a deal worth $54.2 billion

Anthem to acquire Cigna Corporation in a deal worth $54.2 billion


Anthem (NASDAQ:ANTM) and Cigna (NASDAQ:CI) are two well known names in the field of insurance in the United States and the reports suggest that the companies are all set to strike a merger deal worth $54.2 billion. Anthem is presently the second largest health insurance firm in the United States and Cigna is placed in the fifth position. If the merger deal goes through, Anthem and Cigna will turn out to be the leaders in the field health insurance based on revenue, while removing UnitedHealth Group Inc. from the top spot.anthem-cigna-merger

The merger deal between Anthem and Cigna is the second merger in a period of three weeks, followed by the merger deal between Aetna Inc. and Humana Inc., costing $37 billion. The reports suggest that Anthem has agreed to pay approximately $54.2 billion for the complete merger deal, provided the deal gets a complete clearance from the regulatory bodies. Anthem, Inc. seems quite confident as they have stated that they expect to get the approval soon and are looking forward to close the deal by mid – 2016.

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On the other hand, the analysts believe that the merger deal might face a few anti – trust issues with the regulators due to the size of the deal. According to the stats, if the deal goes through the combination of Anthem Inc. and Cigna Corporation will amount to a total empire of $115 billion, with approximately 53 million members.

Anthem Inc., on one hand specializes in working with small and medium plans, while Cigna Inc. has always been amongst the larger plans. The merger deal would also mean that the Anthem – Cigna combination will have a hold on all sections in health insurance.

None of the companies have made any official statement with regard to the merger deal, stating that it is too early to speak anything concrete right now.

Quotes:

“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. 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. The Cigna team has built a set of capabilities that greatly complement our own offerings and the combined company will have a competitive presence across commercial, government, international and specialty segments. These expanded capabilities will enable us to better serve our customers as their health care needs evolve,” said Joseph Swedish, President and Chief Executive Officer of Anthem.

“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 complementary nature of our businesses will allow us to leverage the deep global health care knowledge, local market talent, and expertise of both organizations to ensure that consumers have access to affordable and personalized solutions across diverse life and health stages and position us for sustained success,” said David M. Cordani, President and Chief Executive Officer of Cigna.

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About Wayne Murphy

wmurphy@thenextdigit.com'
Writer and specialized in Mobile Phones (iOS, Android, BB etc), who was with the TND team since it's inception. Other than Blogging, he is also pursuing his graduation on Business Management at CA, California University. All posts by Wayne

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