National pharmacy store chain CVS Health announced it will buy health insurance giant Aetna in a $69 Billion deal. CVS Health, which has over 9,000 pharmacy locations and 1,100 walk-in medical clinics will raise its stake in the health care industry once the cash and stock deal is finalized. As a part of the deal, Aetna shareholders will receive $145.00 per share in cash and 0.8378 CVS Health shares for each Aetna share. CVS Health will also inherit Aetna’s debt as a part of the acquistion.
“This combination brings together the expertise of two great companies to remake the consumer health care experience. 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.” CVS Health President and Chief Executive Officer Larry J. Merlo said in a statement.
When the deal finalizes, CVS will have more products and services to offer customers giving it an edge over competitors like Walgreens, owner of New York City-based Duane Reade. Walgreens has over 8,000 store nationwide.
“This is the next step in our journey, positioning the combined company to dramatically further empower consumers. Together with CVS Health, we will better understand our members’ health goals, guide them through the health care system and help them achieve their best health,” said Mark T. Bertolini, Aetna chairman and CEO. “Aetna has a proud tradition of continually innovating to address unmet consumer needs and providing leading products and services to the marketplace.”