The platform Merlo envisions will connect Aetna's provider network with greater consumer access through CVS retail locations, which include more than 9,700 CVS Pharmacy locations and 1,100 MinuteClinic walk-in clinics. At many of these locations, an all-new health services offering will function as a community-based health hub, CVS says.

For example, patients with diabetes will receive care in between doctor visits through face-to-face counseling at a store-based health hub, along with remote monitoring of key indicators such as blood glucose levels. CVS cites data showing that there are 30 million diabetes patients in the US, whose treatment costs a combined $245 billion annually.

“These types of interventions are things that the traditional healthcare system could be doing,” Merlo says. But the traditional system “lacks the key elements of convenience and coordination that help to engage consumers in their health. That's what the combination of CVS Health and Aetna will deliver.”

The mergeris expected to close in the second half of 2018. Upon closing, three of Aetna's directors, including chairman and CEO Mark T. Bertolini, will be added to the CVS board. In addition, members of the Aetna management team will play significant roles in the newly combined company. Aetna will operate as a standalone business unit within CVS and will be led by members of its current management team.

Barclays and Goldman Sachs are serving as financial advisors to CVS, and Centerview Partners also provided financial advice to the CVS board. The company was advised on legal matters by Shearman & Sterling LLP; Dechert LLP; and McDermott Will & Emery LLP. Lazard and Allen & Co. LLC are serving as financial advisors to Aetna and Evercore is serving as financial advisor to Aetna's board. Davis Polk & Wardwell LLP is acting as Aetna's legal advisor.