CVS, Aetna Agree on Mega Merger, Hartford to Sell Talcott Resolution

Mukesh Buch
04 Dec, 2017
New York City

CVS Health agreed to acquire health insurer Aetna Inc for $207 per share. Exactech agreed to be acquired by TPG Capital for $737 million. Hartford Financial to sell its life insurance business for $2.05 billion.

[R]11:45 AM New York – CVS Health agreed to acquire health insurer Aetna Inc for $207 per share. Exactech agreed to be acquired by TPG Capital for $737 million. Hartford Financial to sell its life insurance business for $2.05 billion.[/R]

Tollbooth Index increased 37.58 or 0.3% to 13,637.14.

Earnings Review

CVS Health Corp ((CVS)) declined 4.3% or $3.18 to $71.87 after the healthcare services provider agreed to acquire health insurer Aetna Inc for $207 per share in cash and stock or for about $69 billion.

The acquisition, including debt, is valued at $77 billion.

CVS will provide a range of health services to Aetna’s 22 million medical members.

“We want to get closer to the community, because all health care is local,” and “creating a new front door for health care in America,” said Aetna’s chief executive officer Mark T. Bertolini.

The transaction is expected to close in the second-half of 2018.

Aetna Inc stock increased 1.7% to $184.35.

Exactech, Inc ((EXAC)) surged 18.7% or $7.90 to $50.25 after the orthopedic implant devices maker said TPG Capital raised its offer to $49.25 per share or about $737 million in cash from the earlier offer of $42 per share on October 23.

The transaction is expected to close during the first-quarter of 2018.

Hartford Financial Services Group Inc ((HIG)) rose 32 cents to $57.74 after the insurance and financial services provider said that it intends to sell its life and annuity business to a group of investors in a deal valued at $2.05 billion.

The sale of Talcott Resolution does not include $1.4 billion previously paid in 2017. Hartford estimated total consideration of $2.05 billion, including cash from the investor group, a pre-closing cash dividend, debt transferred as a part of the sale, and a 9.7% ownership interest in the acquiring company.

Twenty-First Century Fox Inc ((FOX)) jumped 3.9% or $1.25 to $32.72 after Financial Times reported the media and entertainment services provider and the rival Walt Disney Company resumed talks to acquire 21st Century Fox’s movie studio, television production arm, cable channels and international television operations.