Aetna Inc To Purchase All Outstanding Shares Of Humana Inc For $37 Billion

Humana Inc (NYSE:HUM) and Aetna Inc (NYSE:AET) announced that they had entered into a definitive agreement under which Aetna will acquire all outstanding Humana shares for a combination of cash and stock valued at $37 billion or approximately $230 per Humana share based on the closing price of Aetna common shares on July 2, 2015.

Humana and Aetna will host a conference call at 8:30 a.m. ET on Monday, July 6, 2015, to discuss the Transaction. 

In advance of the call Humana has updated the Company’s financial results for the second quarter of 2015 and earnings guidance for full year 2015 in a presentation posted to the Company’s Investor Relations website. 

That presentation includes the following items of note:

Humana has posted the presentation to the Investor Relations portion of the Company’s website at www.humana.com.

Humana has included these non-GAAP financial measures since management believes these measures, when presented in conjunction with the comparable GAAP measure, are useful to both management and its investors in analyzing the company’s ongoing business and operating performance. Consequently, management uses these non-GAAP financial measures as an indicator of business performance, as well as for operational planning and decision-making purposes.  These non-GAAP measures should be considered in addition to, but not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.

Humana Inc. (Humana) is a health and well-being company. The Company operates in three segments: Retail, Employer Group and Healthcare Services. The Company’s medical and specialty insurance products allow members to access health care services through its network of health care providers. Its Retail Segment consists of products sold on a retail basis to individuals, including medical and supplemental benefit plans. Its Employer Group segment consists of products sold to employer groups, including medical and supplemental benefit plans, as well as health and wellness products. Its Healthcare Services segment consists of businesses, which offers services, including pharmacy solutions, provider services, home-based services, integrated behavioral health services, and predictive modeling and informatics services to other Humana businesses, as well as external health plan members, external health plans, and other employers or individuals.

Aetna Inc. is a diversified health care benefits company. The Company offers a range of traditional, voluntary and consumer-directed health insurance products and related services. The Company’s operations are conducted in three business segments: Health Care, Group Insurance and Large Case Pensions. The Company’s Health Care segment includes medical, pharmacy benefit management services, dental, behavioral health and vision plans. The Company’s Group Insurance segment’s products consist primarily of Life Insurance Products, Disability Insurance Products and Long-Term Care Insurance Products. The Company’s Large Case Pensions segment manages a variety of retirement products (including pension and annuity products) primarily for tax-qualified pension plans. The Company’s customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, Governmental units, Government-sponsored plans, labor groups and expatriates.

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