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CVS to buy home health giant Signify Health for about $8 billion

A CVS emblem is displayed at considered one of their shops close to Bloomsburg.

Paul Weaver | Lightrocket | Getty Photos

CVS Well being has reached a deal to amass in-home health-care firm Signify Well being for about $8 billion, the businesses stated Monday.

CVS stated 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 expertise and analytics to assist with in-home affected person care.

“This acquisition will improve our connection to shoppers within the dwelling and permits suppliers to raised deal with 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 stated in a information launch.

The deal comes as rivals from Amazon to Walgreens are shifting 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% over the past month to provide it a market worth of about $6.7 billion at $28.77 a share as of Friday’s shut, in response to FactSet. The Wall Avenue Journal reported on Aug. 2 that Signify was exploring strategic alternate options, together with a sale.

Shares of Signify, which went public in February 2021, surged in late August after stories that Amazon was among the many bidders.

Final month, CVS revealed plans to amass 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 within its shops. It just 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 assist the deal, the businesses stated.

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.

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