Hartford, Conn. - Aetna has entered into an agreement to acquire HMS Healthcare, a regional health care network. The acquisition will enable Aetna to strengthen its local market presence - particularly in Michigan and Colorado - by providing access to highly competitive health care networks. In addition, Aetna also enters the market for providing network access to other health plans in those states. Aetna will acquire HMS for approximately $390 million, subject to customary post-closing adjustment, and expects to finance the transaction from available cash. Aetna expects to close the transaction during the third quarter of 2005. The privately held HMS, which is majority owned by entities affiliated with KRG Capital Partners, operates under four trade names. PPOM, based in Southfield, Michigan, manages and provides access to networks throughout Michigan and parts of Ohio and Indiana. Flora Health Network operates in Ohio, Indiana and Kentucky. Sloans Lake Preferred Health and Mountain Medical Affiliates, based in Denver, manage and provide access to networks in Colorado. Source: Business Wire

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