A CVS logo is displayed at one of their stores near Bloomsburg.
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CVS Health reached an agreement to acquire a home healthcare company Health signal for about $8 billion, the companies said Monday.
CVS said it will pay $30.50 a share in cash to Signify, an acquisition that will build on its growing healthcare offerings. Signify provides technology and analytics to help care for patients at home.
“This acquisition will strengthen our connection with consumers at home and enable providers to better address patient needs as we execute on our vision to redefine the experience.” healthcare,” CVS Health President and CEO Karen Lynch said in a press release.
Deals from competitors from Amazon arrive Walgreens are moving further into the healthcare sector. In July, Amazon announced that it was acquisition of primary care provider One Medical for about $3.9 billion.
According to FactSet, shares of Signify Health are up nearly 45 percent month over month, giving them a market value of about $6.7 billion at $28.77 per share as of the end of Friday. The Wall Street Journal report on August 2 that Signify is exploring strategic alternatives, including price cuts.
Signify shares, going public in February 2021, increased sharply at the end of August after it was reported that Amazon was among the contractors.
Last month, CVS revealed its plan buy back or participate in shares in a primary care company later this year.
The Signify deal follows other acquisitions and moves into primary healthcare. CVS previously acquired insurance company Aetna and pharmacy benefits manager Caremark, and customers can get vaccines or urgent care at MinuteClinic outlets inside the company’s stores. . It recently introduced therapy for mental health in several stores.
The companies expect the acquisition, subject to regulatory approval, to close in the first half of next year.
Private equity firm New Mountain Capital owns about 60% of Signify’s common stock and has agreed to back the deal, the companies said.
CVS Health and Signify Health will host an analyst and investor call at 8:30 a.m. ET on Tuesday to discuss the transaction.
