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Cigna to buy HealthSpring for $3.8B

Chicago Tribune / Associated Press, October 24, 2011

Managed-care company Cigna Corp. said Monday it will buy fellow health insurer HealthSpring Inc. in a $3.8 billion deal that would boost Cigna's Medicare Advantage business. The Bloomfield, Conn., company will pay $55 per share in cash for HealthSpring, which is based in Nashville, Tenn. That represents a 37 percent premium over the stock's Friday closing price of $40.16. HealthSpring shares soared 33 percent, or $13.34, to $53.50 in premarket trading, while Cigna stock was up more than 3 percent, or $1.55, to $46.25. Cigna said the boards of directors for both companies have approved the deal, and it is expected to close in the first half of 2012.