Big news in the Medicare market today…
Cigna and Healthspring announced that Cigna will pay around $3.8 billion to buy HealthSpring in a deal that is expected to close in the first half of 2012. In the agreement approved by both companies’ board of directors, Cigna will pay $55 per share in cash for the Nashville, Tennessee based company. Cigna representatives said that the price represents a 37% premium over Friday’s closing price of $40.16.
“HealthSpring is a great fit with Cigna’s growth plans to expand into the Seniors and Medicare segment through a premier business and trusted brand name,” said David M. Cordani, President and Chief Executive Officer. “Our two companies share a common strategic vision and philosophy that we create customer value by partnering with health care professionals, and use information and incentives to deliver high-quality, differentiated programs.”
I’m sure each company will release more information in the coming days. Typically, everything will stay “business as usual” until the buyout is complete. I assume that will be the case with HealthSpring’s Medicare Advantage Plans and Cigna’s Part D Plans.
Read the full story here.
