Walgreens-backed VillageMD to buy Summit Health in $9 billion deal

Primary attraction supplier VillageMD, which is backed by Walgreens Boots Alliance Inc, is buying urgent attraction supplier Summit Health successful a woody valued astatine astir $9 billion, arsenic the No. 2 U.S. pharmacy concatenation expands its health-care footprint.

Private equity steadfast Warburg Pincus-backed Summit Health runs an autarkic physician-run aesculapian groups, and besides operates CityMD, which acts arsenic alternatives to infirmary exigency section visits.

Walgreens said connected Monday volition put $3.5 cardinal done an adjacent premix of indebtedness and equity to enactment the acquisition, which is expected to adjacent successful the archetypal 4th of 2023. The institution volition stay the largest and consolidating shareholder of VillageMD with astir 53% stake.

The woody volition besides diagnostic investments from wellness insurer Cigna Corp's healthcare portion Evernorth, which volition besides go a number proprietor successful VillageMD.

Walgreens besides raised its fiscal twelvemonth 2025 income extremity for U.S. health-care concern to $14.5 cardinal to $16.0 billion, from $11.0 cardinal to $12.0 cardinal antecedently to relationship for the deal.

The institution had invested $5.2 cardinal past twelvemonth to rise its involvement successful VillageMD to 63% from 30%.

The announcement is the latest consolidation successful the U.S. health-care sector. It follows the $4-billion acquisition of primary-care relation 1Life Healthcare Inc and CVS Health Corp's $8 cardinal buyout of Signify Health .

Together, VillageMD and Summit Health volition person a beingness successful much than 680 locations.

Summit Health and CityMD had merged successful August 2019, with the institution present having implicit 13,000 employees and operating successful implicit 370 locations.