CVS Health has entered into an agreement to acquire Signify Health.
CVS Health is making its biggest push yet into the home health-care space as it continues to expand beyond its retail roots.
The retail pharmacy and health insurance giant said it has reached an agreement to acquire health-care company Signify Health for $30.50per share in cash. The total transaction value is put at about $8 billion.
Signify provides technology and analytics to help with in-home patient care. It also has a network of more than 10,000 clinicians across all 50 states — including physicians, nurse practitioners and physician assistants — who make home-based visits to identify a patient's clinical and social needs, and then connect them to appropriate follow-up care and community-based resources.
"Signify Health will play a critical role in advancing our health care services strategy and gives us a platform to accelerate our growth in value-based care," said CVS Health president and CEO, Karen S. Lynch. "This acquisition will enhance our connection to consumers in the home and enables providers to better address patient needs as we execute our vision to redefine the health care experience."
The two companies said they expected the deal to close in the second half of 2023, pending regulatory and shareholder approval.
"As we carefully considered our long-term strategic options, we determined that CVS Health is the ideal partner, given its focus on expanding access to health services and helping consumers navigate to the best sites of care,” stated Signify CEO Kyle Armbrester will continue to lead Signify Health as part of CVS Health.“We are both building an integrated experience that supports a more proactive, preventive and holistic approach to patient care, and I look forward to executing on our shared vision for the future of care delivery.”
CVS has been expanding its medical offerings and the company said in early August that it would either purchase or take a stake in a primary-care company by the end the of the year. In remarksduring the company’s second-quarter earnings call, president and CEO Karen Lynch said the company is looking to team up with a provider that has a strong management team and tech background and the ability to grow quickly.
“We are committed to extending our health services,” Lynch said. “And we are very encouraged and confident that we'll take the next step on this journey by the end of this year.”
Walgreens and Amazon have already entered the space. In October, Walgreens became the majority owner of VillageMd, with plans to open hundreds of primary care Village Medical practices at Walgreen locations. More recently, in July, Amazon said it would acquire One Medical, a membership-based primary health care provider, for $3.9 billion. And Walmart is openingfreestanding clinics.