Aetna Says Coventry Health Care Purchase Will Increase Medicare, Medicaid Business

BOSTON—Aetna will acquire Coventry Health Care Inc. in a transaction valued at $7.3 billion, the two companies announced Aug. 20.

The merger will increase the share of Aetna’s revenues derived from government programs to 30 percent, up from the current 23 percent, and will combine Aetna’s focus on commercial large group business with Coventry’s larger presence in the small-group and individual market.

“We think diversification is incredibly important as we head into health care reform,’’ Mark T. Bertolini, chairman and chief executive officer of Aetna, said in an Aug. 20 conference call.

Boards of directors from both firms have approved ...