CVS buys home healthcare giant Signify Health for about $8 billion

The CVS logo is displayed in one of their stores near Bloomsburg.

Paul Weaver | Light rocket | Getty Images

CVS Health has closed a deal to acquire home health care provider Signify Health for about $8 billion, the companies said on Monday.

CVS said it will pay $30.50 per share of Signify, an acquisition that will be based on its growing healthcare services. Signify provides technology and analytics to help you care for patients at home.

“This acquisition will strengthen our relationship with consumers in the home and enable providers to better serve patients as we deliver on our vision to reimagine the healthcare experience,” Karen Lynch, President and CEO of CVS Health, said in a press release.

The deal is that competitors from Amazon to Walgreens are pushing further into the healthcare sector. In July, Amazon announced it was acquiring primary care provider One Medical for about $3.9 billion.

Shares of Signify Health are up nearly 45% over the past month, bringing their market value to about $6.7 billion at a price of $28.77 per share at Friday’s close, according to FactSet. Wall Street Magazine informed August 2 Signify is exploring strategic alternatives, including a sale.

Signify, which went public in February 2021, surged in late August after reports that Amazon was among the bidders.

Last month, CVS announced plans to acquire or acquire a stake in the primary health care company by the end of the year.

The Signify deal follows other acquisitions and shifts to primary care. CVS previously acquired Aetna insurance company and Caremark Pharmacy Benefits Manager, and customers can get vaccines or emergency care at MinuteClinic outposts inside its stores. Recently some stores have introduced mental health therapy.

The companies expect the acquisition, which requires regulatory approval, to be completed in the first half of next year.

The companies said private equity firm New Mountain Capital owns about 60% of Signify’s common stock and has agreed to support the deal.

CVS Health and Signify Health will meet with analysts and investors Tuesday at 8:30 am ET to discuss the deal.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button