CVS Health to take over Aetna for $69bn

Pharmacy innovation firm CVS Health has signed a definitive merger agreement to acquire all outstanding shares of healthcare benefits provider Aetna for $69bn.

Under the terms of the agreement, the total value of the deal will amount to $77bn, including the assumption of Aetna’s debt.

The deal is expected to address the demands of the existing current healthcare system by providing access to quality care at low-cost, local settings in the community, at home or through digital tools.

"Together with CVS Health, we will better understand our members’ health goals, guide them through the healthcare system and help them achieve their best health."

CVS Health president and CEO Larry Merlo said: "This combination brings together the expertise of two great companies to remake the consumer healthcare experience.

"With the analytics of Aetna and CVS Health’s human touch, we will create a healthcare platform built around individuals."

The firms intend to work with healthcare professionals and health benefits companies to deliver a user-friendly and less expensive platform for consumers.

Aetna chairman and CEO Mark Bertolini said: "Together with CVS Health, we will better understand our members’ health goals, guide them through the healthcare system and help them achieve their best health."

CVS Health intends to provide personalised healthcare experience through Aetna’s network of providers at more than 9,700 CVS Pharmacy locations and 1,100 MinuteClinic walk-in clinics.

The firm intends to additionally offer Omnicare senior pharmacy solutions, Coram infusion services and in-clinic and home-based care by more than 4,000 CVS Health nursing professionals across the US.

CVS and Aetna further plan to integrate data and analytics, and at-home monitoring devices with physician-provided care to improve health at substantially lower cost for patients.

The transaction is subject to regulatory approvals and other customary closing conditions and expected to be completed in the second half of next year.

After completion, Aetna will hold a 22% stake in the combined entity while the remaining interest will be owned by CVS Health.