New York Life Insurance Co. is acquiring Cigna Corp.'s group life and disability insurance business for $6.3 billion.

The deal is expected to close in the third quarter of 2020.

After-tax proceeds from the transaction for Cigna are expected to be approximately $5.3 billion. The managed care company expects to use the proceeds for share repurchases and repayment of debt in 2020. The impact of the transaction to Cigna's EPS is expected to be neutral in 2020 and modestly accretive in 2021.

The Cigna group life employees, as well as employees who primarily support the acquired business, will transfer to New York Life.

Credit Suisse Securities (USA) LLC is acting as financial adviser and Debevoise & Plimpton LLP is serving as legal adviser to New York Life.

BofA Securities is acting as financial adviser, Sidley Austin LLP is serving as lead legal counsel and Paul Weiss Rifkind Wharton & Garrison LLP is serving as antitrust counsel to Cigna. Wachtell Lipton Rosen & Katz is also advising Cigna on the transaction.

Cigna’s board of directors has also increased the company’s share repurchase authority by $3.0 billion to an aggregate amount of $4.0 billion.