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Cigna Agrees to Buy Healthspring to Expand Medicare Business

Cigna Corp., the fifth-largest U.S. insurer, agreed to buy Healthspring Inc., a health-maintenance organization, for $3.8 billion in cash to triple the number of Medicare customers it serves.

Healthspring investors will receive $55 a share, Cigna, based in Bloomfield, Connecticut, and Healthspring said today in a statement. The offer represents a 37 percent premium over Franklin, Tennessee-based Healthspring’s Oct. 21 closing price.