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.
