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.
Shares of Signify went through IPO in February 2021, and have since then soared in late August after reports that Amazon was among the bidders.
Last month, CVS revealed plans to acquire or take a stake in a primary-care company by year’s end.
The Signify deal follows other acquisitions and shifts into primary health care. CVS previously acquired insurer Aetna and pharmacy benefits manager Caremark, and customers can get vaccines or urgent care at MinuteClinic outposts inside of its stores. It recently introduced therapy for mental health at some stores.
The firms expect the acquisition — subject to regulatory approval — to close in the first half of next year.
Private equity firm New Mountain Capital owns about 60% of Signify’s common stock and agreed to support the deal, the companies said.
CVS Health and Signify Health will hold an analyst and investor call at 8:30 a.m. ET on Tuesday to discuss the transaction.