CVS Health (NYSE: CVS) announced plans to acquire in-home-health-care company Signify Health for approximately USD8 Billion. According to the pharmacy chain, it will pay USD30.50 a share in cash for Signify as a means of expanding its healthcare services. Signify has the technology and analytics to assist in-home patient care.
“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. In addition, this combination will strengthen our ability to expand and develop new product offerings in a multi-payor approach.”
The agreement comes as rivals such as Amazon and Walgreens delve deeper into the healthcare sector. Amazon recently announced its own acquisition of primary-care provider One Medical for about USD3.9 Billion.
Signify Health’s shares have risen almost 45% throughout the last month and currently have a market value of about USD6.7 Billion at USD28.77 a share, according to FactSet. The Wall Street Journal was the one to disclose that Signify was considering strategic alternatives, including a sale.
The companies revealed that the deal should be finalized in the first half of next year.