CVS is buying home healthcare giant Signify Health for about $8 billion

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A CVS logo is displayed at one of their stores near Bloomsburg.

Paul Tisserand | Light flare | Getty Images

CVS Health has reached an agreement to acquire home healthcare company Signify Health for approximately $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 facilitate patient care at home.

“This acquisition will enhance our connection with consumers in the home and enable providers to better meet patient needs as we execute our vision to redefine the healthcare experience,” said CVS President and CEO. Health, Karen Lynch, in a press release.

The deal comes as Amazon’s rivals to Walgreens advance in the healthcare sector. In July, Amazon announced the acquisition of primary care provider One Medical for approximately $3.9 billion.

Shares of Signify Health have jumped nearly 45% in the past month to give it a market value of about $6.7 billion to $28.77 per share as of Friday’s close, according to FactSet. The Wall Street Journal reported on August 2 that Signify was exploring strategic alternatives, including a sale.

Shares of Signify, which went public in February 2021, surged in late August after reports that Amazon was among the bidders.

Last month, CVS revealed plans to acquire or take an equity stake in a primary care company by the end of the year.

The agreement with Signify follows other acquisitions and focuses on primary healthcare. CVS previously acquired insurer Aetna and pharmaceutical benefits manager Caremark, and customers can get vaccines or emergency care at MinuteClinic outposts inside its stores. He recently introduced mental health therapy in select 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 hold an analyst and investor call at 8:30 a.m. ET on Tuesday to discuss the transaction.

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