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Last Update: 24-Oct-11 11:30 ET
Healthspring to be Acquired by Cigna (CI) for $55/Share in Cash
Healthspring (HS $53.64 +13.48) announced that they have signed a definitive agreement under which Cigna will acquire all the outstanding shares of HS for $55 per share in cash, a 37% premium over the closing stock price on Friday October 21, 2011, representing a total transaction value of approx. $3.8 bln.
The business combination is expected to be accretive to Cigna earnings per share in the first full year of operations. The agreement has been approved by the boards of directors of both companies and is subject to required regulatory approvals. Consistent with its strategy, CI expects to continue to create meaningful near-term earnings growth and expects this transaction to enhance its revenue growth and profitability over time.
The business combination is expected to be accretive to Cigna earnings per share in the first full year of operations. The agreement has been approved by the boards of directors of both companies and is subject to required regulatory approvals. Consistent with its strategy, CI expects to continue to create meaningful near-term earnings growth and expects this transaction to enhance its revenue growth and profitability over time.
