HCSC (Health Care Service Corporation) said it entered into a definitive agreement to acquire several Medicare-related businesses and CareAllies from The Cigna Group (NYSE: CI).

This acquisition includes Cigna's Medicare Advantage, Medicare Supplemental Benefits, Medicare Part D, and CareAllies businesses. The deal is valued at roughly $3.7 billion.

The transaction is anticipated to be finalized early in 2025.

"The agreement will enable The Cigna Group to drive meaningful value for all our stakeholders, providing an enhanced ability to accelerate investment and growth in our services platform, while further deepening our commitment to our existing health benefits platform,” said David M. Cordani, Chairman and Chief Executive Officer of The Cigna Group.

“In tandem, the transaction will position our Medicare businesses and CareAllies for additional growth as they continue to serve the needs of their customers as part of HCSC.”

Cigna stock was up 1% in pre-open trade.

By Senad Karaahmetovic