HealthSpring has about 340,000 Medicare Advantage customers in 11 states, including Florida, New Jersey, Pennsylvania and Texas. It also has a Medicare prescription drug business with more than 800,000 customers.
Bloomfield, Conn.-based Cigna will pay $55 per share in cash for Nashville, Tenn.-based HealthSpring. That represents a 37-percent premium over the stock's Friday closing price of $40.16.
HealthSpring shares soared 33 percent, or $13.44, to $53.60 in pre-market trading, while Cigna stock was up nearly 3 percent, or $1.30, to $46.
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. Cigna said it has a commitment from Morgan Stanley for bridge financing, which, in addition to available liquidity, will fund the acquisitions.
