A CVS logo is displayed at one of their stores near Bloomsburg.
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CVS Health has reached an agreement to acquire home health care company Signify Health for about $8 billion, the companies announced Monday.
CVS said it would pay $30.50 per share in cash for Signify, an acquisition that would build on its growing healthcare services. Signify provides technology and analytics to support patient care at home.
“This acquisition will enhance our connection to consumers at home and enable providers to better meet patient needs as we execute on our vision to redefine the healthcare experience,” said Karen Lynch, President and CEO of CVS Health, in a press release.
The deal comes as competitors from Amazon to Walgreens continue to push into the healthcare sector. In July, Amazon announced it would acquire primary care provider One Medical for about $3.9 billion.
According to FactSet, shares of Signify Health are up nearly 45% over the past month to a market value of about $6.7 billion at $28.77 per share at the close. The Wall Street Journal reported Aug. 2 that Signify is evaluating strategic alternatives, including a sale.
Shares of Signify, which went public in February 2021, rose sharply in late August after reports that Amazon was among the bidders.
Last month, CVS announced plans to acquire or invest in a primary care business by the end of the year.
The Signify deal follows other acquisitions and moves into primary healthcare. CVS previously acquired insurer Aetna and Caremark, the pharmacy benefits manager, and customers can get vaccines or emergency supplies at MinuteClinic outposts in their stores. It has recently introduced mental health therapy in some stores.
The companies expect the acquisition, which is 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 has agreed to back the deal, the companies said.
CVS Health and Signify Health will host a conference call for analysts and investors Tuesday at 8:30 a.m. ET to discuss the transaction.