Aetna to Acquire Medicity

Aetna (Hartford, Conn.) today announced that it has entered into an agreement to acquire Medicity, a health information exchange technology company, headquartered in Salt Lake City, Utah. A leading innovator in provider solutions, Medicity offers a broad range of products and services that enable health systems, hospitals, physician practices and health information exchanges to securely access and exchange health care information, improving the quality and efficiency of patient care and reducing unnecessary health care costs. Medicity markets its products and services locally, regionally and nationally.

The purchase price is approximately $500 million. Aetna expects to finance the acquisition with available resources. The transaction is subject to customary closing conditions, including Hart-Scott-Rodino antitrust regulatory approval. The transaction is projected to be neutral to Aetna’s financial results in 2011.

Medicity’s connected network provides collaboration and coordination of care delivered through a variety of communications tools, which helps physicians and other health care providers get timely clinical information about patients using the platform of their choice. Medicity’s health information exchange (HIE) technology reaches more than 760 hospitals, 125,000 physician users and 250,000 end users.