American pharmaceutical chain CVS Health (CVS) has reached a deal to buy in-home
healthcare company Signify Health (SGFY) for $8 billion U.S.
CVS will pay $30.50 U.S. per share in cash for Signify Health and said that the acquisition will
enable it to build on its growing healthcare services business. Signify Health provides
technology and analytics that support in-home patient care.
The deal comes as competitors such as Amazon (AMZN) and Walgreens (WBA) are pushing
into the healthcare sector. In July, Amazon announced that it is acquiring primary care provider
One Medical for $3.9 billion U.S.
Signify Health’s shares have surged nearly 45% over the last month to give it a market value of
$6.7 billion U.S. The company’s shares finished trading last week at $28.77 U.S. per share.
The Wall Street Journal newspaper reported in August that Signify Health was exploring
strategic alternatives, including a sale, sending the company’s stock higher.
CVS previously acquired insurer Aetna and pharmacy benefits manager Caremark, and
customers can now get COVID-19 vaccines and other shots inside its pharmacies.
The companies expect the acquisition, which is subject to regulatory approval, to close in the
first half of 2023.
CVS’ stock is down 5% this year and trading at $99.44 U.S. per share.
