(MENAFN) Insurer Aetna Inc has agreed to buy rival Coventry Health Care Inc for USD5.7 billion in cash and stock, the Wall Street Journal (WSJ) reported siting people familiar with the matter.
If successfully sealed, the deal will help Aetna increase its share of revenue from its government business to over 30 percent from 23 percent currently, WSJ said.
Aetna expects the acquisition to add about 45 cents per share to its 2014 earnings and expects to boost its 2015 earnings by 90 cents per share, the Journal said.
Based in Bethesda, Maryland, Coventry offers a variety of insurance services, including government-financed programs. It earned USD543.1 million last year.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.