"Both of our businesses will be stronger together."
David Cordani
A definitive agreement is in place for Anthem to take over Bloomfield-based Cigna. The deal comes nearly a year into talks, and a month after an earlier attempt was rebuffed.
Cigna shareholders will receive about $188 a share for their Cigna stock -- $103.40, or about 55 percent in cash, and 0.5152 shares in Anthem stock, about 45 percent.
Anthem’s Joseph Swedish will be Chairman and CEO of the combined company.
Cigna’s David Cordani will be President and Chief Operating Officer. Anthem's nine-member board of directors will add Cordani and four independent directors from Cigna's current board.
Cordani said the two companies share what he called “proud histories and an even brighter future." He said the two sides believe "both of our businesses will be stronger together." And Anthem's Swedish said they believe "this is the best transaction for both companies."
The combined company will have some 53 million members, and serve about 17 percent of the U.S. population, but Cordani said they serve different parts of the population.
“The two businesses as they sit today -- while large businesses -- are quite complementary, whether you look at it in terms of size segments: the majority of our business is in; the geographies they’re in; the diversities of the programs; etcetera,” Cordani said.
Cigna has about 4,200 employees in Connecticut, mostly on the Bloomfield campus.
A spokesman said there’s no immediate word on whether overall staffing there would be affected, and Swedish said there have been no decisions about individuals.
“We’ve got tremendous talent in both organizations. I like to characterize it that we’ve got a very big tent that’s being built. There’s a lot of talent under that tent, and so a tremendous amount of effort will have to go into the integration of the two companies,” Swedish said.
The combined company is expected to generate more than $115 million in annual revenues. If shareholders and regulators approve, the deal could close the second half of next year.
The announcement comes just weeks after Hartford-based Aetna's merger with Humana. Industry observers say the Affordable Care Act has pressured companies to become more efficient to save money.
