Evernorth, the leading health services portfolio of Cigna (NYSE: CI), today announced it has entered into a definitive agreement to acquire MDLIVE, a privately held, leading 24/7 virtual care delivery platform. Upon completion, this transaction will provide Evernorth with a highly complementary platform that will rapidly expand Evernorth's capabilities to deliver a more affordable, convenient and connected patient care experience.
"Customers expect more convenient care interactions, and COVID-19 has rapidly accelerated this need. We see an immediate opportunity to build a new model of care delivery, one that delivers a connected experience with greater affordability, predictability and simplicity. With the opportunity to serve millions more people, and with more personalized ways to deliver care, we will have an even greater impact on our customers, clients and partners," said Tim Wentworth, Chief Executive Officer of Evernorth. "Combining MDLIVE's platform and strong network for virtual providers with our comprehensive care solutions, we will be better positioned to optimize the care journey to improve affordability and accessibility, and to deliver superior support to health plans as they advance their own care delivery models for the future."
"Becoming part of the Evernorth portfolio is an opportunity for MDLIVE to join an organization that complements our work, and has been a long-time partner and investor in our business," said Charles Jones, Chairman and Chief Executive Officer of MDLIVE. "Together, we can accelerate MDLIVE's growth strategy and ability to serve more customers, while also building new services that will benefit our existing stakeholders, including employees, partners, patients, customers, health plans and providers. With this transaction, Evernorth will gain an industry-leading platform, and a passionate and pioneering workforce that made virtual care a reality, and an essential and life-saving service during the COVID-19 pandemic."
With high customer and provider satisfaction ratings, it is clear patients and providers value their experience with MDLIVE. MDLIVE also has a sizable and forward-thinking client base, a class-leading provider network, brand recognition among customers and consumers, and experience in medical and behavioral health. Together, we imagine a new end-to-end care experience to complement – not replace – the way customers and patients interact with their existing providers to achieve:
"From cost to complexity to quality, there is tremendous potential for progress in health care. As one, Evernorth and MDLIVE can accelerate meaningful change," said Eric Palmer, President and Chief Operating Officer of Evernorth. "MDLIVE will be part of the new, differentiated and future-state care solutions that improve the patient experience, close the patient-provider accessibility gap, and bring providers opportunities to augment the services they currently offer. We'll also have the opportunity to expand the reach of MDLIVE's capabilities to Evernorth's clients, as well as Cigna's U.S. Medical customers and clients."
The transaction is subject to customary closing conditions, and is expected to close in the second quarter of 2021, subject to receipt of required regulatory approvals.
Cigna continues to expect to deliver 2021 adjusted earnings per share of at least $20 inclusive of the impact of the acquisition of MDLIVE.1 Cigna plans to provide additional information pertaining to the proposed acquisition of MDLIVE during its upcoming Investor Day event scheduled for March 8, 2021.
Advisors
BofA Securities acted as exclusive financial advisor to MDLIVE, and Davis Polk & Wardwell served as legal counsel.
Greenhill & Co., LLC served as exclusive financial advisor to Cigna. Wachtell Lipton Rosen & Katz served as legal counsel, and Sheppard, Mullin, Richter & Hampton acted as regulatory counsel to Cigna.
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