CVS To Acquire Home Health Behemoth Signify Health for $8 Billion

CVS Phamarcy
CVS Phamarcy

CVS Health is close to signing a deal to acquire in-home healthcare company Signify Health for about $8 billion, the companies announced Monday.

CVS said it would pay $30.50 a share in cash for Signify. Signify provides technology and analytics to help with in-home patient care.

“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,” CVS Health President and CEO Karen Lynch said in a news release.

The news came amid fierce competition from Amazon and Walgreens, which are also diving deeper in the healthcare sector. In July, Amazon announced it was acquiring primary-care provider One Medical for about $3.9 billion.

Signify Health’s shares have skyrocketed about 45% over the last month to give it a market value of about $6.7 billion at $28.77 a share as of Friday’s close, according to FactSet. The Wall Street Journal reported on Aug. 2 that Signify was exploring strategic alternatives, including a sale.