AET Aetna Inc. (delisted)

Yesterday, Humana Inc. (HUM) announced the acquisition of health care analytics company, Antiva Health. However, the financial terms of the deal remain undisclosed.

Antiva is a San Diego-based company, which was established in 2000. It analyses vast amounts of health care data to provide useful and actionable information to companies, thereby helping them improve the quality of their health care services and reduce costs.

The acquisition is expected to strengthen Humana’s clinical management. It will be additionally beneficial for the company as it has already been using the services of Antiva since 2010.

Humana uses the Antiva Insight engine to spot gaps in members care and identify concerns regarding safety of drugs. Thereafter, the company sends automated messages to its members, service associates and health care providers to ensure timely relay of the information. The Antiva Insight engine uses more sources than other analysis engines to collect and analyze health care data.

However, following the acquisition Antiva will not reserve its analytical services for Humana, rather it will continue serving other clients as a subsidiary of the group company. Nevertheless, the acquisition is not expected to significantly affect Humana’s earnings in 2011 or 2012.

Humana is the fifth largest insurer on enrollment basis in the U.S. and competes with companies like WellPoint Inc. (WLP) and Aetna Inc. (AET). The company has been rapidly expanding its business through the acquisitions route.

In November 2011, Humana announced an agreement to acquire chronic-care provider SeniorBridge for an undisclosed amount. SeniorBridge is an 11-year old New York-based healthcare provider, which offers in-home care to seniors with chronic diseases such as Alzheimer’s disease, Parkinson’s disease and congestive heart failure.

Earlier, in September, Humana’s subsidiary, Concentra Inc., acquired four urgent care medical centers from NextCare Inc. In the same month, the company announced a deal to acquire California-based MD Care, which is a privately-held health maintenance organization that operates in southern-California.

Before that, in August 2011, Humana declared its intention to acquire California-based Arcadian Management Services, which is a Medicare Advantage health maintenance organization with members in 15 U.S. states. We expect the company to grow through these acquisitions, although risks related to integration remain a cause of concern.

Currently, the company carries a Zacks #2 Rank, implying a short-term Buy rating, with a slight upward pressure on the shares.

 
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