CVS buys dwelling well being care supplier Signify for $eight billion

Dallas– Drugstore operator CVS Health Corp. announced on Monday that it will buy home healthcare provider Signify Health for $8 billion.

According to CVS, Signify has more than 10,000 employees, including doctors and nurses, a presence in every state and offers technology platforms.

“This acquisition will enhance our connection to consumers at home and allow providers to better serve patients’ needs as we execute on our vision of redefining the healthcare experience,” said Karen Lynch, CEO of CVS, in a statement announcing the transaction.

The acquisition would continue CVS’ efforts to grow from the roots of its pharmacy chain into other sectors of the healthcare industry. In 2018, the Woonsocket, Rhode Island company bought health insurer Aetna for $69 billion.

CVS will pay Signify $30.50 per share in cash. According to a CVS presentation, the transaction has an equity value of $7.6 billion, bringing the total transaction to approximately $8 billion, including debt, stock appreciation rights and other items.

CVS will also acquire Caravan Health, which Signify agreed to purchase earlier this year. Caravan works with accountable care organizations, which are groups of hospitals, physicians, and other providers who care for Medicare patients.

The transaction is subject to regulatory approval and a vote by Signify shareholders. According to CVS, private equity funds associated with New Mountain Capital, which own about 60% of Signify’s stock, have agreed to vote their stocks for the deal.

The companies expect the deal to close in the first half of next year.

CVS said executives would discuss the transaction in a call with analysts Tuesday.

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