Aetna 2013 Annual Report Download - page 102

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Annual Report- Page 96
Proposed Acquisition of the InterGlobal Group
In November 2013, we entered into a definitive agreement to acquire the InterGlobal group, a company that
specializes in international private medical insurance for groups and individuals in the Middle East, Asia, Africa and
Europe. The purchase price is not material. We expect to finance the acquisition using available resources.
2011 Acquisitions
During 2011, we completed the acquisitions of Medicity Inc. (“Medicity”), Prodigy Health Group (“Prodigy”),
Genworth's Medicare Supplement business and related blocks of in-force business and PayFlex Holdings, Inc.
(“PayFlex”). Each of these acquisitions was funded using available resources. Refer to Note 7 on page 99 for
additional information.
• Medicity Inc.
In January 2011, we acquired Medicity, a health information exchange company, for approximately $490
million, net of cash acquired. We recorded goodwill related to this transaction of approximately $385
million, an immaterial amount of which is tax deductible. All of the goodwill related to this acquisition was
assigned to our Health Care segment.
• Prodigy Health Group
In June 2011, we acquired Prodigy, a third-party administrator of self-funded health care plans, for
approximately $600 million, net of cash acquired. We recorded goodwill related to this transaction of
approximately $445 million, of which approximately $52 million is tax deductible. All of the goodwill
related to this acquisition was assigned to our Health Care segment.
• Genworth Financial, Inc.'s Medicare Supplement Business and Related Blocks of In-Force Business
In October 2011, we acquired Genworth's Medicare Supplement business and related blocks of in-force
business for approximately $276 million. We recorded $53 million of goodwill related to this transaction.
The excess of the purchase price over the fair market value of the net assets acquired, including goodwill, is
tax deductible as a result of the transaction being treated as an asset purchase for tax purposes. All of the
goodwill related to this acquisition was assigned to our Health Care segment.
• PayFlex Holdings, Inc.
In October 2011, we acquired PayFlex, one of the nation’s largest independent account-based health plan
administrators, for approximately $200 million, net of cash acquired. We recorded goodwill related to this
transaction of approximately $149 million, an immaterial amount of which is tax deductible. All of the
goodwill related to this acquisition was assigned to our Health Care segment.