Aetna to buy Humana for $37 Billion

Editor's Note

Aetna Inc has agreed to buy rival health insurer Humana Inc for $37 billion in cash and stock, creating the second-largest provider of health insurance in the US.

The Affordable Care Act has spurred mergers by introducing rules that push insurers to look for savings. Humana’s 3.2 million Medicare Advantage members made it a target.

Together, Aetna and Humana will have more than 33 million health-insurance customers and some $115 billion in annual revenue.

HARTFORD, Conn. & LOUISVILLE, Ky.-( BUSINESS WIRE)-Aetna (NYSE: AET) and Humana Inc. (NYSE: HUM) today announced that they have entered into a definitive agreement under which Aetna will acquire all outstanding shares of Humana for a combination of cash and stock valued at $37 billion or approximately $230 per Humana share based on the closing price of Aetna common shares on July 2, 2015.