A CVS emblem 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 is going to pay $30.50 a share in money for Signify, an acquisition that might construct on its rising health-care companies. Signify offers know-how and analytics to assist with in-home affected person care.
“This acquisition will improve our connection to shoppers within the house and permits suppliers to higher handle 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 practically 45% during the last month to offer it a market worth of about $6.7 billion at $28.77 a share as of Friday’s shut, based on 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 yr’s finish.
The Signify deal follows different acquisitions and shifts into major well being care. CVS beforehand acquired insurer Aetna and pharmacy advantages supervisor Caremark, and clients can get vaccines or pressing care at MinuteClinic outposts inside its shops. It lately 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 yr.
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 a.m. ET on Tuesday to debate the transaction.
