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CVS announced the value of the transaction to total $78 billion on Wednesday, Nov. 28, which includes $70 billion to purchase Aetna and the remainder to cover existing debts.
While the Aetna brand will still be used for health insurance products, the companies’ combined shares will be listed under the ‘CVS’ symbol on the NYSE. Aetna, based in Hartford, will run as a separate business under CVS Health.
“Today marks the start of a new day in health care and a transformative moment for our company and our industry,” said CVS Health President and CEO Larry Merlo in a statement. “By delivering the combined capabilities of our two leading organizations, we will transform the consumer health experience and build healthier communities through a new innovative health care model that is local, easier to use, less expensive and puts consumers at the center of their care.”
Executives of the two companies have agreed that this merger will help to fill various gaps in America’s current healthcare system, providing the chances for an improved level of care with lower costs and more technological conveniences and efficiencies.
Aetna, which serves approximately 39 million people, brings on a wide variety of insurance products and other similar services in the healthcare industry. This includes pharmacy, behavioral health, group life and disability plans, workers’ compensation administrative services, and more.
In the following months, CVS plans to implement new services and programs in attempts to streamline their new healthcare model and improve accessibility.
“Our combined company will have a community focus, engaging consumers with the care they need when and where they need it, will simplify a complicated system and will help people achieve better health at a lower cost,” Merlo explained. “We are also leading change in health care by challenging the status quo with new technologies, business models and partnerships. In doing so, we will continue to deliver on our purpose of helping people on their path to better health.”
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