|Aetna to Acquire Medicity|
HARTFORD, Conn., Dec 07, 2010 (BUSINESS WIRE) -- Aetna (NYSE: AET) today announced that it has entered into an agreement to acquire Medicity, a health information exchange technology company, headquartered in Salt Lake City, Utah. A leading innovator in provider solutions, Medicity offers a broad range of products and services that enable health systems, hospitals, physician practices and health information exchanges to securely access and exchange health care information, improving the quality and efficiency of patient care and reducing unnecessary health care costs. Medicity markets its products and services locally, regionally and nationally.
The purchase price is approximately $500 million. Aetna expects to finance the acquisition with available resources. The transaction is subject to customary closing conditions, including Hart-Scott-Rodino antitrust regulatory approval. The transaction is projected to be neutral to Aetna's financial results in 2011.
Medicity's connected network provides collaboration and coordination of care delivered through a variety of communications tools, which helps physicians and other health care providers get timely clinical information about patients using the platform of their choice. Medicity's health information exchange (HIE) technology reaches more than 760 hospitals, 125,000 physician users and 250,000 end users.
The company has:
"This acquisition will enable Aetna to offer a set of convenient, easy-to-access technology solutions for physicians, hospitals and other health care providers. That, in turn, can help improve the quality and efficiency of patient care," said Mark T. Bertolini, Aetna CEO and president. "Strategically, we believe this acquisition will enhance Aetna's capabilities and accelerate our growth in the health information technology and health information exchange space."
"We are excited about joining Aetna, with the shared vision for improving the health care experience for all stakeholders," said James K. 'Kipp' Lassetter, M.D., Medicity chairman and CEO. "The combination of Medicity's connected health care platform for providers with the clinical decision support capabilities of Aetna's ActiveHealth Management subsidiary can help physicians make better decisions in real-time as they collaborate and coordinate care."
Medicity will operate as a separate business within Aetna, under its existing leadership structure.
Aetna is one of the nation's leading diversified health care benefits companies, serving approximately 35.4 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities and health care management services for Medicaid plans. Our customers include employer groups, individuals, college students, part-time and hourly workers, health plans, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com.
CAUTIONARY STATEMENT -- Certain information in this press release is forward looking, including, but not limited to, the projected impact of the transaction on Aetna's 2011 financial results, the development of new business offerings, Aetna's ability to offer technology solutions for physicians, hospitals and other health care providers, the quality and efficiency of patient care, Aetna's capabilities and growth in the health information technology and health information exchange spaces, and information available to physicians. Forward-looking information is based on management's estimates, assumptions and projections, and is subject to significant uncertainties and other factors, many of which are beyond Aetna's and Medicity's control. Important risk factors could cause actual future results and other future events to differ materially from those currently estimated by management. Those risk factors include, but are not limited to: the ability to successfully develop and integrate the business operations described herein in a timely and cost-efficient manner (including obtaining the required regulatory approvals on a timely basis to close the transaction); the ability to realize projected revenue; the ability to retain current customers of Medicity and grow its customer base in the future; retention of key personnel of Medicity; and adverse government regulation or review or enhanced government enforcement.