Aetna Completes Acquisition Of Strategic Resource Company
HARTFORD, Conn., January 6, 2005 – Aetna (NYSE: ΑET) today announced that it has completed its acquisition of Strategic Resource Company (SRC), a privately held administrator of group benefit products for part-time and hourly workers, headquartered in Columbia, S.C.
Aetna in August announced its intention to acquire 100 percent of the stock of SRC as well as the insurance contracts administered by SRC for approximately $250 million. The transaction was financed from available cash.
"This transaction positions Aetna to reach another customer segment, the uninsured, part-time and hourly workers who until now have been underserved by national health plans," said Ronald A. Williams, president of Aetna. "SRC has a strong membership base and product expertise that will complement Aetna’s existing plan sponsor relationships and position us for future growth. We look forward to integrating this business into our family of innovative products and helpful resources to provide health and related benefits to this important segment."
The company will be known as "SRC, an Aetna company." Founded in 1976, it is one of the largest providers of limited benefits to part-time and hourly workers, currently administering benefits to more than 700 employers in 46 states and the District of Columbia. SRC provides individuals and their families with benefits for many of their most frequent health care expenses.
As one of the nation’s leading providers of health care, dental, pharmacy, group life, disability and long-term care benefits, Aetna puts information and helpful resources to work for its approximately 13.6 million medical members, 11.6 million dental members, 8.3 million pharmacy members and 13.3 million group insurance members to help them make better informed decisions about their health care and protect their finances against health-related risks. Aetna provides easy access to cost-effective health care through a nationwide network of more than 646,000 health care professionals, including over 385,000 primary care and specialist doctors and 3,908 hospitals. For more information, please visit www.aetna.com. (Figures as of September 30, 2004)