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Aetna, Inc. (AET)

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  • Thu, Mar. 19, 10:34 AM
    • According to Bloomberg, major providers of Medicare coverage like Humana (HUM +0.9%), WellCare (WCG +0.6%) and Centene (CNC +1.4%) are high on the acquisition radar of large insurers who have relatively modest exposure to the rapidly growing Obamacare-stoked space. Likely suitors would be Aetna (AET +1.3%) and Anthem (ANTM +0.3%).
    • There hasn't been much M&A activity among health insurers due to the uncertainties surrounding the implementation of the Patient Protection and Affordable Care Act. Now that its implications are better understood, the number of deals should perk up.
    • No bargains are out there, though. S&P's index of health insurers galloped 57% last year. The current valuations for Humana, WellCare and Centene are $26.9B, $4.1B and $8.3B, respectively, all at record levels since at least 2007.
    • Anthem CFO Wayne DeVeydt says his firm will continue to make smaller deals although a larger purchase is not out of the question. Other firms declined to comment.
    • Leerink Partners analyst Ana Gupte says a likely scenario is consolidation among the five largest health insurers: UnitedHealth Group (UNH +0.8%), Anthem, Aetna, Cigna (CI +0.6%) and Humana.
    • Aging baby boomers, born between 1946 and 1964, are driving the increase in Medicare enrollment. Membership is expected to rise to 68.4M in 2023, up more than 25% from this year's 54.4M. Medicaid is projected to add 9.3M people over the same time frame.
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  • Nov. 3, 2014, 9:10 AM
    • Aetna (NYSE:AET) acquires privately-held bswift, a provider of a technology platform that offers a retail shopping experience for health insurance exchanges and employers nationwide. It also provides benefits administration technology and services to employers.
    • The purchase price is ~$400M and will be funded with cash on hand.
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  • Jan. 22, 2013, 10:08 AM
    Aetna (AET +0.5%) agrees to sell its Medicaid business Missouri Care to WellCare Health Plans (WCG -0.3%) as part of Aetna's $5.6B acquisition of Coventry Health Care (CVH +0.1%). A combination of Aetna's and Coventry's Medicaid plans in Missouri would exceed permissible membership thresholds under the state's contracts. Financial terms weren't disclosed. (PR)
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  • Nov. 21, 2012, 1:42 PM
    Aetna (AET +1.2%) releases a statement after Coventry Health Care (CVH +0.4%) stockholders voted overwhelmingly in favor of Aetna's proposed acquisition. AET CEO Mark Bertolini noted: “We continue to believe that Coventry will complement Aetna's strategy to expand our core insurance business, increase our presence in the fast-growing Government sector and expand our relationships with providers in local geographies.”
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  • Sep. 30, 2012, 5:51 AM
    Three pension funds that are investors in Coventry Healthcare (CVH) have sued to block its $5.6B acquisitions by Aetna (AET). Among other things, the funds argue that Coventry's shareholders are receiving a premium of just 20%, far less than premiums in other similar deals, which are as much as 43%.
     
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  • Sep. 11, 2012, 2:57 PM
    Coventry Health Care (CVH -0.3%) slips today after Stifel Nicolaus cut the shares to Hold and removed its previous $37 price target. The firm cites the long awaited takeout by Aetna at $42 per share, saying "After many long years of referring to Coventry as a "takeout", we and many others were right."
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  • Aug. 21, 2012, 8:53 AM
    SA author Valuentum says of Aetna's (AET) $7.3B deal to acquire Coventry Health Care (CVH) that "it's hard not to like a deal that will add strong earnings growth at a reasonable multiple/price." While management denies that the purchase is politically motivated, "we think it's safe to say the company feels Medicaid, as well as the Affordable Healthcare Act, is here to stay."
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  • Aug. 20, 2012, 6:18 AM
    More on Aetna (AET) / Coventry (CVH) deal: Coventry shareholders will receive $27.30 in cash and 0.3885 Aetna common shares for each Coventry share, or $42.08/share. That's a 20% premium to Coventry's closing price on Friday, and its shares are +18.1% premarket. Deal adds over 5M members to Aetna and increases revenues from government to over 30% from 23%. To bring synergies of $400M/year in 2015. (PR)
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  • Aug. 20, 2012, 6:06 AM
    Aetna (AET) confirms a report that it has agreed to acquire Coventry Health Care (CVH), with the deal valued at $7.3B, including the assumption of Coventry's debt. (PR)
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  • Jul. 18, 2011, 9:52 AM
    Aetna (AET) agrees to buy privately held health-plan administrator PayFlex for about $202M in a deal that will strengthen Aetna's Consumer Fund Services (CFS) operations. The deal is expected to close in H2 2011. (PR)
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  • Jun. 13, 2011, 12:04 PM
    Aetna (AET) joins the increasing expansion into senior plans with a deal to buy a Medicare-supplement business from Genworth Financial (GNW +2.4%) for $290M. The unit will add 145,000 members to Aetna's rolls and had about $317M in net earned premium last year. (previously: WellPoint/CareMore)
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  • Jun. 9, 2011, 3:23 PM
    Shares of Aetna (AET +3.7%) and Cigna (CI +4.6%) jump amid speculation that the two health insurers should merge. Barclays analyst Josh Raskin describes a setup where Aetna could pay as much as $16.1B for Cigna.
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  • Apr. 28, 2011, 9:24 AM
    Aetna (AET) agrees to acquire Prodigy Health Group, an independent third-party administrator of self-funded health care plans, for ~$600M. Aetna says it expects to finance the acquisition with available resources. AET +7.3% premarket. (PR)
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Company Description
Aetna Inc. is a health care benefit company, which offers traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans.
Sector: Healthcare
Country: United States