CVS to purchase dwelling well being big Signify Well being for about $8 billion

CVS to purchase dwelling well being big Signify Well being for about $8 billion

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

Paul Weaver | Lightrocket | Getty Photographs

CVS Well being has reached a deal to accumulate in-home health-care firm Signify Well being for about $8 billion, the businesses mentioned Monday.

CVS mentioned it should pay $30.50 a share in money for Signify, an acquisition that will construct on its rising health-care providers. Signify gives expertise and analytics to assist with in-home affected person care.

“This acquisition will improve our connection to customers within the dwelling and allow suppliers to raised tackle affected person wants as we execute our imaginative and prescient to redefine the well being care expertise,” CVS Well being President and CEO Karen Lynch mentioned 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 Well being’s shares have surged almost 45% over the past month to provide it a market worth of about $6.7 billion at $28.77 a share as of Friday’s shut, in keeping with FactSet. The Wall Avenue Journal reported on Aug. 2 that Signify was exploring strategic 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.

Final month, CVS revealed plans to accumulate or take a stake in a primary-care firm by 12 months’s finish.

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

The businesses anticipate the acquisition, which is topic to regulatory approval, to shut within the first half of subsequent 12 months.

Non-public fairness agency New Mountain Capital owns about 60% of Signify’s widespread inventory and agreed to help the deal, the businesses mentioned.

CVS Well being and Signify Well being will maintain an analyst and investor name at 8:30 am ET on Tuesday to debate the transaction.