June 20, 2015
Proposal, valued at $53.8 billion on an enterprise basis, reflects a 35.4% premium to unaffected Cigna price on May 28, 2015
• Combination expected to drive adjusted earnings per share accretion for Anthem of greater than 10% in year one, with accretion more than doubling in year two
• Anthem management confident in achievability of synergies and committed to retaining investment grade debt ratings
• Creates diversified company with greater than $115 billion in annual revenues, based on the most recent 2015 outlook publicly reported by both companies.
• Combined entity would serve approximately 53 million medical members, as of March 31, 2015, with commercial, government, consumer and specialty franchises.
• Anthem expresses frustration with and urges Cigna’s Board of Directors to drop unreasonable governance demands in light of the significant premium being offered and return to negotiations to reach a mutually agreed upon transaction.
Anthem Proposes to Acquire Cigna Corporation for $184 Per Share in Cash and Stock | Business Wire
INDIANAPOLIS–(BUSINESS WIRE)–Anthem, Inc. (NYSE: ANTM) today announced that it has submitted a non-binding proposal to acquire Cigna Corporation (NYSE: CI) for $184 per share in cash and stock. The proposed combination would create a premiere health benefits company with critical diversification and scale to lead the transformation of health care delivery for consumers. The combined company would be an industry leader with greater than $115 billion in annual revenues, based on the most recent 2015 outlook publicly reported by both companies. Together Anthem and Cigna would gain meaningful diversification covering approximately 53 million combined medical members and strong commercial, government, consumer and specialty franchises.