CVS to acquire Aetna for $69B; Lower healthcare costs and better experiences promised

Drugstore chain operator CVS Health is buying health-insurer Aetna for $69 billion, a transaction that promises to fill an unmet need in the current health care system according to a joint press release Sunday.

The deal would enable CVS to expand its range of health services to Aetna’s vast membership, with CVS’ storefronts becoming community medical hubs with primary-care, drug-management and other services. "It will redefine access to high-quality care in lower cost, local settings whether in the community, at home, or through digital tools," said the company.

CVS Pharmacy locations will include space for wellness, clinical and pharmacy services, vision, hearing, nutrition, beauty, and medical equipment. An entirely new health services offering available in many locations will function as a community-based health hub dedicated to connecting the pathways needed to improve health and answering patients' questions about their health conditions, as well as prescription drugs and health coverage.

This personalized health care experience will be delivered by connecting Aetna's extensive network of providers with greater consumer access through CVS Health. This includes more than 9,700 CVS Pharmacy locations and 1,100 MinuteClinic walk-in clinics as well as further extensions into the community through Omnicare's senior pharmacy solutions, Coram's infusion services, and the more than 4,000 CVS Health nursing professionals providing in-clinic and home-based care across the nation. As a result, there will be a better opportunity to utilize local care solutions in a more integrated fashion with the goal of improving patient outcomes.

It is unknown at this time how the merger will affect the three South Shore locations of CVS in Lake Tahoe.

"This combination brings together the expertise of two great companies to remake the consumer health care experience," said CVS Health President and Chief Executive Officer Larry J. Merlo. "With the analytics of Aetna and CVS Health's human touch, we will create a health care platform built around individuals."

"We look forward to working with the talented people at Aetna to position the combined company as America's front door to quality health care, integrating more closely the work of doctors, pharmacists, other health care professionals and health benefits companies to create a platform that is easier to use and less expensive for consumers," added Merlo.

Under the terms of the merger agreement, each outstanding share of Aetna common stock will be exchanged for $145.00 in cash and 0.8378 shares of CVS Health common stock. Upon closing of the transaction, Aetna shareholders will own approximately 22% of the combined company and CVS Health shareholders will own approximately 78%.

The transaction is expected to close in the second half of 2018. It already has the approval of both company's Board of Directors but it is subject to approval by CVS Health and Aetna shareholders, regulatory approvals and other customary closing conditions.