“We are very pleased to announce an agreement that will deliver meaningful value to consumers and shareholders through expanded provider collaboration, enhanced affordability and cost of care management capabilities, and superior innovations that deliver a high quality health care experience for consumers,” Swedish said in a statement. “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 health care challenges of the increasingly diverse markets, membership, and communities we serve.”
The deal comes as the insurance industry is grappling with rapid changes in the business, including the ripple effects of federal health care reform.
Five members of the Cigna board, including Cordani, will join the nine Anthem board members, creating a 14-person group to oversee the company.
Anthem is delivering a combination of cash and stock for Cigna, equaling compensation of about $188 per Cigna share based on the May 28 closing price of Anthem stock. The two insurers have been maneuvering at the bargaining table for weeks. Cigna initially rejected Anthem’s $184-per-share offer as too low.
The deal will require regulatory approvals, but Anthem said it’s confident it can obtain authorization to close the deal by the second half of 2016.
“Our companies share proud histories and an even brighter future,” Cordani said. “Going forward our new company will deliver an acceleration of innovative and affordable health and protection benefits solutions that help address our health system’s challenges and provide supplemental insurance protection, and health care security to consumers, their families, and the communities we share with them.”
Anthem runs Blue Cross and Blue Shield insurance plans in 14 states and Medicaid offerings through the Amerigroup brand in 19 states.