CVS Health Corp. has reached a deal to buy home-health and technology services provider Signify Health Inc. for about $8 billion, as the drugstore chain continues to expand beyond its retail origins. (Photo by Mario Tama/Getty Images)
By Michelle F. Davis and Kiel Porter | Bloomberg
CVS Health Corp. has reached a deal to buy home-health and technology services provider Signify Health Inc. for about $8 billion, as the drugstore chain continues to expand beyond its retail origins.
CVS is acquiring Signify for $30.50 a share, according to a statement Monday.
CVS emerged as the winning bidder over potential suitors that had included UnitedHealth Group Inc., Amazon.com and Option Care Health Inc.
Through its software and services, Signify aims to help clients — payers like health plans, government programs and employers — shift to value-based payment plans. It’s backed by New Mountain Capital, which formed the company in 2017, according to the private equity firm’s website.
“Signify Health will play a critical role in advancing our health-care services strategy and gives us a platform to accelerate our growth in value-based care,” CVS Health Chief Executive Officer Karen S. Lynch said in the statement. “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.”
The companies said they expect the transaction to close in the first half of 2023.
Signify rose 1.3% to close at $28.77 in New York trading Friday, giving it a market value of about $6.7 billion.
Originally published at Bloomberg