(Bloomberg) — Aetna Inc. agreed to buy Humana Inc., the second-largest provider of private Medicare insurance, for $37 billion in cash and stock to broaden its health-care coverage.
The transaction values Humana at $230 a share based on yesterday's closing price for Aetna, the companies said in a statement Friday. That's 23 percent above Humana's last close.
The acquisition comes amid a period of consolidation in the industry, with all of the five biggest health insurers looking at deals. Humana's 3.2 million Medicare Advantage members have made it a target, since more Americans are turning 65 and becoming eligible for the health program for the elderly and its private insurer-run version.
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