Anthem Inc said on Friday it would buy Cigna Corp in a deal valued at $54.2 billion, creating the largest U.S. health insurer.

Cigna shareholders will get $103.40 per share in cash and 0.5152 Anthem shares.

The deal comes three weeks after Aetna Inc struck a deal to buy Humana Inc for $37 billion and is part of an industry-wide consolidation of the health insurance industry following the roll-out of the Obama government's healthcare reform law.