The giant insurance company, Aetna, was recently acquired by CVS Health, where the acquisition bid was nearly $69 billion. With this acquisition, CVS Health hopes to be a highly integrated healthcare provider and at the same time take on Amazon – which is planning to step into the healthcare market.
This also means that users can get the treatment and care that they require from the nearest CVS location that would be a one-stop shop for anything related to health at a lower cost. If there aren’t any objections from healthcare regulators, the deal will mostly be closed by the second half of 2018.
Taking on Amazon
When Amazon hinted that it would be venturing into the healthcare market, it’s got everyone a little jittery. The new acquisition only proves that healthcare companies are trying to reshape the industry and the market before Amazon swoops in. Since CVS makes most of its revenue from pharmacy benefits business, the company could continue to thrive even if Amazon swoops in and destroys its retail sales.
But it’s a whole other story for Aetna. However, since both Aetna and CVC Health work in relatively close areas, the deal may just pull through and redefine the market. Since not every pharmacy can afford to acquire an insurance company, one can only wait and see what Amazon will do.
Coupang Corp overtook Reliance Retail to become the fastest growing company in Asia New
Indian RPA Company Intellibot to be acquired by ServiceNow
AIA Forges a 15-Year Life Insurance Distribution Partnership with BEA
Tech Mahindra Acquires 70% Stake in Perigord Life Science Solutions
Digital Healthcare Tech Company DXY Raises $500M
© 2021 CIO Bulletin. All rights reserved.