Karen Lynch (Photo: Aetna)
CVS Health Corp. today completed its $78 billion acquisition of Aetna Inc.
Aetna, a Hartford-based insurer that was founded in 1853, is now a business unit at CVS Health.
Larry Merlo, president of CVS Health said in a statement that the combined company will develop a new health care model that is local, easier to use, less expensive and puts consumers at the center of their care.
"As the front door to quality health care, our combined company will have a community focus, engaging consumers with the care they need when and where they need it, will simplify a complicated system and will help people achieve better health at a lower cost," Merlo said.
(Related: CVS Gets Final Approval to Acquire Aetna)
Karen Lynch, who has been president of Aetna, is now the president of the Aetna business unit at CVS, and she is the top Aetna executive who is still part of the Aetna business unit.
Lynch said in a video statement about the consummation that Aetna and VS have been working together for years.
"We share a common vision to improve the consumer experience and to reduce overall costs," Lynch said.
The CVS Health-Aetna Deal
CVS Health is paying $70 billion to Aetna shareholders, and it is also taking responsibility for $8 billion in Aetna debt.
CVS Health, has stock that trades on the New York Stock Exchange, under the symbol CVS.
The company now owes about $40 billion on unsecured senior notes related to the Aetna deal. The notes pay an average blended rate of about 4.19%, the company said today.
The notes have maturities ranging from two to 30 years.
CVS Health also has established a $5 billion term loan facility agreement, with a $3 billion three-year portion and a $2 billion five-year portion. CVS Health can use that facility to borrow cash when it needs cash, at rates to be determined by what CVS Health's debt ratings are when it borrows the cash, the company said.
