Anthem has entered into a definitive agreement to acquire rival health insurer Cigna in a cash and stock transaction valued at $54.2 billion.
Here are five things to know about the transaction.
1. Under the deal, Cigna stockholders will receive $103.40 cash and 0.5152 Anthem common shares for each Cigna share.
2. Once the deal is closed, Anthem will have more than $115 billion in pro forma annual revenues and will cover approximately 53 million medical members.
3. Joseph Swedish, president and CEO of Anthem, will serve as chairman and CEO of the combined company. "We believe that this transaction will allow us to enhance our competitive position and be better positioned to apply the insights and access of a broad network and dedicated local presence to the healthcare challenges of the increasingly diverse markets, membership and communities we serve," Mr. Swedish said in a news release.
4. David Cordani, president and CEO of Cigna, will take on the role of president and COO of the combined company.
5. The deal is expected to close in the second half of 2016.