UNDATED, Aug 20: Insurer Aetna Inc has signed a deal to buy rival Coventry Health Care Inc for $5.7 billion in cash and stock, the Wall Street Journal reported, citing people familiar with the matter.
Aetna is paying $42.08 a share for Coventry, a 20.4 percent premium to Friday’s closing price, the newspaper said.
Aetna and Coventry Health Care were not immediately available for comment.
The acquisition of Coventry will help Aetna to lift its share of revenue from its government business to over 30 percent from 23 percent currently, paper reported.
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. (agencies)
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