Aetna Acquires Coventry for $7.3B in the Latest Healthcare M&A

Insurer and health-care giant, Aetna Inc. (AET), has agreed to buy managed health care provider Coventry Health Care, Inc. (NYSE:CVH), in a $5.7 billion cash and stock deal.

Adding debt assumed, the deal value becomes $7.3 billion. Aetna would pay $42.08 a share for Coventry, in a ratio of 65 percent cash and 35 percent stock.

This represents a 20 percent premium on Coventry’s shares, compared to their close last Friday. Shares of Aetna are quoting at $39.85 (+4.78 percent), while CVH is trading at $41.65 (+19.18 percent).

The deal would give Aetna early mover status in catering...