NEW YORK (TheStreet) -- Aetna Inc. (AET) announced today its plan to acquire the privately held insurance exchange technology provider Bswift, "a technology platform that offers a retail shopping experience for health insurance exchanges and employers nationwide," for approximately $400 million.
Aetna, a healthcare insurance provider, said the acquisition is part of its plan to pursue a more consumer focused retail model. Insurers have begun adopting this practice as federal law requires more people to shop for insurance, Market Watch reports.
"With more employers giving employees their choice of benefits via private exchanges, Bswift's technology platform will provide Aetna with the capability to deliver a new private-exchange offering for employers of all sizes where the focus is on helping people easily choose a plan that's right for them and their families," said Aetna CEO Mark Bertolini.
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The deal is expected to close before the end of the year.
Shares of Aetna are lower by 0.25% to $82.30 in mid-afternoon trading on Monday.
Separately, TheStreet Ratings team rates AETNA INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate AETNA INC (AET) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."