Global health service company Cigna Corp. is purchasing all the outstanding shares of HealthSpring, owner and operator of coordinated care plans, primarily Medicare Advantage plans. The Bloomfield, Connecticut–based company will pay a total of about $3.8 billion in cash for the deal, pending regulatory clearance.

The deal, which has been approved by the boards of directors of both companies, is expected to close by mid-2012. On the transaction, the buyer is financially advised by Morgan Stanley, whereas Goldman, Sachs & Co. is advising HealthSpring. Cigna has obtained a commitment for bridge financing provided by Morgan Stanley to fund the acquisition. Cigna also aims to issue new equity and debt to fund the deal.

Click here for the release from Cigna Corp.