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CVS to get home health giant Signify Health for approximately $8 billion

A CVS logo is displayed at among their stores near Bloomsburg.

Paul Weaver | Lightrocket | Getty Images

CVS Health has already reached a deal to obtain in-home health-care company Signify Health for approximately $8 billion, the firms said Monday.

CVS said it’ll pay $30.50 a share in cash for Signify, an acquisition that could build on its growing health-care services. Signify provides technology and analytics to greatly help with in-home patient care.

“This acquisition will enhance our link with consumers in the house and enables providers to raised address patient needs once we execute our vision to redefine medical care experience,” CVS Health President and CEO Karen Lynch said in a news release.

The offer comes as competitors from Amazon to Walgreens are moving further in to the health-care sector. In July, Amazon announced it had been acquiring primary-care provider One Medical for approximately $3.9 billion.

Signify Health’s shares have surged nearly 45% during the last month to provide it market value around $6.7 billion at $28.77 a share by Friday’s close, in accordance with FactSet. The Wall Street Journal reported on Aug. 2 that Signify was exploring strategic alternatives, including a sale.

Shares of Signify, which went public in February 2021, surged in late August after reports that Amazon was on the list of bidders.

Last month, CVS revealed plans to acquire or have a stake in a primary-care company by year’s end.

The Signify deal follows other acquisitions and shifts into primary healthcare. CVS previously acquired insurer Aetna and pharmacy benefits manager Caremark, and customers will get vaccines or urgent care at MinuteClinic outposts within its stores. It recently introduced therapy for mental health at some stores.

The firms expect the acquisition, that is at the mercy of regulatory approval, to close in the initial 1 / 2 of next year.

Private equity firm New Mountain Capital owns about 60% of Signify’s common stock and decided to support the offer, the firms said.

CVS Health insurance and Signify Health will hold an analyst and investor call at 8: 30 a.m. ET on Tuesday to go over the transaction.

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