Health insurer Anthem has reached a deal to acquire Cigna for US$48 billion.
The transaction will create the largest U.S. health insurer by membership.
Anthem will pay US$188 a share for its rival. Cigna shareholders will receive US$103.40 in cash and 0.5152 Anthem common shares for each Cigna common share. Including debt, the transaction is valued at US$54.2 billion.
Last month, Cigna turned down an offer of US$184 a share.
Read: Anthem nears deal to buy Cigna: Reports
Following the transaction, Anthem will have more than US$115 billion in pro forma annual revenues and will provide coverage to about 53 million people.
“Anthem is confident in its ability to obtain all necessary regulatory and other approvals,” says a statement from the company.
The deal is expected to close in the second half of 2016, pending the receipt of customary approvals, including certain state regulatory approvals and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
This is the second deal in the American health insurance industry this year. Earlier this month, Aetna agreed to buy Humana for US$37 billion.
There are five large health insurers in the United States. The largest, UnitedHealth Group, has not participated in a deal yet.
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