CVS Health Corp. (NYSE: CVS) and Aetna Inc. (NYSE: AET) are closing in on finalizing the acquisition, and the companies have now announced the management team going forward. Ultimately, Aetna will operate as a stand-alone business unit within CVS, and it will be led by members of its current management team.
In the release, the companies also noted that members of both the Aetna and CVS Health management teams will play significant roles in the newly combined company.
The transaction is expected to close in the second half of 2018 and is subject to regulatory approvals. Until the close of the transaction, CVS Health and Aetna will continue to operate as two separate companies.
Management positions were announced as follows:
Business Unit Leadership
Jon Roberts will continue to serve as Executive Vice President and Chief Operating Officer for CVS Health with operational oversight for CVS Pharmacy, CVS Caremark and Omnicare.
Karen S. Lynch, currently President of Aetna, will serve as Executive Vice President of CVS Health and President for the Aetna business unit.
Fran S. Soistman will continue to serve in his current position of Executive Vice President and Head of Government Services for Aetna, leading the Medicare, Medicaid and Federal Plans businesses reporting to Lynch.
Alan M. Lotvin, M.D., currently Executive Vice President of Specialty Pharmacy for CVS Caremark, has been named Executive Vice President, Transformation, with oversight of the portfolio of business transformation initiatives for the combined company.
Richard di Benedetto will continue to serve in his current position of President of Aetna International.
Shared Service Leadership
Shawn M. Guertin, currently Executive Vice President, Chief Financial Officer and Chief Enterprise Risk Officer for Aetna, will assume the position of Executive Vice President and Chief Financial Officer for CVS Health. In this role, Guertin will have oversight of Investor Relations, Financial Planning and Analysis for the lines of business, Tax and Treasury functions, and Accounting.
Thomas M. Moriarty will continue to serve as Executive Vice President, Chief Policy and External Affairs Officer and General Counsel for CVS Health. Moriarty’s responsibilities include Government Affairs, Corporate Communications and Legal.
Troyen A. Brennan, M.D., M.P.H. will continue to serve as Executive Vice President and Chief Medical Officer for CVS Health. Brennan provides oversight for clinical and medical affairs and health care services.
Shares of Aetna were last seen up about 0.6% to $176.66, with a consensus analyst price target of $203.19 and a 52-week trading range of $145.34 to $194.40.
CVS shares traded up 1.2% to $64.08. The stock has a 52-week range of $60.14 to $84.00 and a consensus price target of $86.80.