CVS to buy home health giant Signify Health for about $8 billion

A CVS brand is displayed at certainly one of their shops close to Bloomsburg.

Paul Weaver | Lightrocket | Getty Images

CVS Health has reached a deal to purchase in-home health-care firm Signify Health for about $8 billion, the businesses stated Monday.

CVS stated it can pay $30.50 a share in money for Signify, an acquisition that might construct on its rising health-care providers. Signify offers know-how and analytics to assist with in-home affected person care.

“This acquisition will enhance our connection to consumers in the home and enables providers to better address patient needs as we execute our vision to redefine the health care experience,” CVS Health President and CEO Karen Lynch stated in a information launch.

The deal comes as opponents from Amazon to Walgreens are transferring additional into the health-care sector. In July, Amazon introduced it was buying primary-care supplier One Medical for about $3.9 billion.

Signify Health’s shares have surged practically 45% during the last month to give it a market worth of about $6.7 billion at $28.77 a share as of Friday’s shut, in accordance to FactSet. The Wall Street Journal reported on Aug. 2 that Signify was exploring strategic alternate options, together with a sale.

Shares of Signify, which went public in February 2021, surged in late August after studies that Amazon was among the many bidders.

Last month, CVS revealed plans to purchase or take a stake in a primary-care firm by yr’s finish.

The Signify deal follows different acquisitions and shifts into major health care. CVS beforehand acquired insurer Aetna and pharmacy advantages supervisor Caremark, and prospects can get vaccines or pressing care at MinuteClinic outposts inside its shops. It not too long ago launched remedy for psychological health at some shops.

The firms anticipate the acquisition, which is topic to regulatory approval, to shut within the first half of subsequent yr.

Private fairness agency New Mountain Capital owns about 60% of Signify’s frequent inventory and agreed to assist the deal, the businesses stated.

CVS Health and Signify Health will maintain an analyst and investor name at 8:30 a.m. ET on Tuesday to focus on the transaction.

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