CVS to buy home health giant Signify Health for about $8 billion

CVS Health has reached a woody to get in-home health-care institution Signify Health for astir $8 billion, the companies said Monday.

CVS said it volition wage $30.50 a stock successful currency for Signify, an acquisition that would physique connected its increasing health-care services. Signify provides exertion and analytics to assistance with in-home diligent care.

"This acquisition volition heighten our transportation to consumers successful the location and enables providers to amended code diligent needs arsenic we execute our imaginativeness to redefine the wellness attraction experience," CVS Health President and CEO Karen Lynch said successful a quality release.

The woody comes arsenic competitors from Amazon to Walgreens are moving further into the health-care sector. In July, Amazon announced it was acquiring primary-care supplier One Medical for astir $3.9 billion.

Signify Health's shares person surged astir 45% implicit the past period to springiness it a marketplace worth of astir $6.7 cardinal astatine $28.77 a stock arsenic of Friday's close, according to FactSet. The Wall Street Journal reported connected Aug. 2 that Signify was exploring strategical alternatives, including a sale.

Shares of Signify, which went nationalist successful February 2021, surged successful precocious August aft reports that Amazon was among the bidders.

Last month, CVS revealed plans to acquire oregon instrumentality a stake successful a primary-care institution by year's end.

The Signify woody follows different acquisitions and shifts into superior wellness care. CVS antecedently acquired insurer Aetna and pharmacy benefits manager Caremark, and customers tin get vaccines oregon urgent attraction astatine MinuteClinic outposts wrong of its stores. It precocious introduced therapy for intelligence wellness astatine immoderate stores.

The companies expect the acquisition, which is taxable to regulatory approval, to adjacent successful the archetypal fractional of adjacent year.

Private equity steadfast New Mountain Capital owns astir 60% of Signify's communal banal and agreed to enactment the deal, the companies said.

CVS Health and Signify Health volition clasp an expert and capitalist telephone astatine 8:30 a.m. ET connected Tuesday to sermon the transaction.