VillageMD to Acquire Summit Health-CityMD | Financial Buzz

VillageMD to Acquire Summit Health-CityMD

VillageMD reported entry into a definitive agreement to acquire Summit Health-CityMD.  This transaction is valued at USD 8.9 Billion with investments from Walgreens Boots Alliance, Inc. (NASDAQ: WBA) and an affiliate of Evernorth, a subsidiary of Cigna Corporation (NYSE: CI). “This is an epic milestone in our journey to transform healthcare in the United States. Summit Health-CityMD has been a leader in delivering coordinated, multi-specialty care for decades. We are honored to work side-by-side with their 13,000 strong workforce who are passionately committed to delivering the best outcomes for millions of patients,” said Tim Barry, CEO and Chair of VillageMD. “Both organizations share a deep commitment to keeping our patients and clinicians at the forefront of what we do to best serve them.”

“Summit Health-CityMD and VillageMD are patient-centered and physician-led companies that have complementary offerings and a shared core belief that taking excellent care of the patient will remain the cornerstone of our success,” said Jeff Alter, CEO of Summit Health-CityMD. “Adding our expertise and geographic coverage to VillageMD’s proven value-based primary care approach will enhance the lives of so many patients and physicians across the country, helping to lower healthcare costs and improve the health of our communities. We are incredibly excited about the potential of these combined companies. I would also like to thank our incredible team of clinicians and support staff for their daily dedication to our patients, and to Warburg Pincus for their support and partnership.”

“Summit Health-CityMD joining VillageMD is transformational for our U.S. Healthcare segment and reinforces our intent to create greater access to quality healthcare across the care continuum,” said Roz Brewer, CEO, WBA. “This transaction accelerates growth opportunities through a strong market footprint and wide network of providers and patients across primary, specialty and urgent care.”

WBA plans to invest USD 3.5 Billion through debt and equity to support the acquisition of Summit Health-CityMD. WBA is raising its U.S. Healthcare fiscal year 2025 sales goal to USD 14.5 Billion to USD 16 Billion from USD 11 Billion to USD 12 Billion previously. 

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