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May 7, 2013

Aetna (AET) Completes Coventry Health Acquisition; Boosts FY13 EPS Outlook

Filed under: M&A News — Tags: , — admin @ 8:55 am

Aetna, Inc. (NYSE: AET) has completed its acquisition of Coventry Health Care, Inc., a diversified managed health care company based in Bethesda, Md.Aetna now projects full-year 2013 operating earnings per share of $5.70 to $5.85,(1) an increase of $0.20 to $0.25 per share due to the completion of the Coventry acquisition. Aetna’s previous projection was $5.50 to $5.60 of operating earnings per share.(1) Aetna will host a brief conference call today at 5 p.m. ET to provide details on its combined company projections for 2013. At that time, an updated summary of Aetna’s full-year projections will be made available on the Investor Information section of Aetna.com.*** The Street is currently looking for FY13 EPS of $5.58.”The successful completion of our acquisition of Coventry presents new opportunities for Aetna and supports our strategy for growth in the changing health care marketplace,” said Mark T. Bertolini, Aetna’s chairman, CEO and president. “Together, we are well positioned – competitively, strategically and financially – to meet the evolving needs of the people we serve.”The acquisition builds on Aetna’s existing resources and capabilities, and increases the company’s mix of business in higher-growth Government programs. As a result of the acquisition, Aetna has added approximately 3.7 million medical members and 1.5 million Medicare Part D members. In addition, Aetna’s Medicaid business has grown from 1.1 million members to more than 2 million members, and its Medicaid footprint has expanded from 12 to 16 states.Bertolini continued, “An integral part of Aetna’s growth strategy is to enhance the depth and breadth of our core insurance business while increasing our presence in the fast-growing government sector, all toward expanding our relationships with local providers. Coventry helps us realize these goals.”

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