Shares of Humana Inc. were up around 2.8% midday on Monday to about $192.7 per share on the heels of the July 3 announcement that Aetna will acquire Humana for $37 billion or approximately $230 per share. The price tag represents a premium of close to 23% over Humana’s closing share price on July 2. Under the agreement, Humana stockholders will receive $125 in cash and 0.8375 Aetna common shares for each Humana share. The combined company would have projected operating revenue of approximately $115 billion in 2015, with about 56 percent from government sponsored programs, including Medicare and Medicaid. The combined firm will have more than 33 million medical members, based on memberships as of March 31, 2015. Aetna’s shareholders would own approximately 74 percent of the combined company and Humana’s shareholders would own approximately 26 percent. The companies expect the transaction to generate $1.25 billion in annual synergies in 2018.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
