CVS to buy home health-care provider Signify for $8 billion
Drugstore operator CVS Health says it's buying home-healthcare provider Signify Health for $8 billion
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Drugstore operator CVS Health Corp. said Monday that it will buy home-health provider Signify Health for $8 billion.
CVS said Signify has more than 10,000 employees including physicians and nurses, a presence in every state, and offers technology platforms.
“This acquisition will enhance our connection to consumers in the home and enables providers to better address patient needs as we execute our vision to redefine the health care experience," CVS CEO Karen Lynch said in a statement announcing the deal.
The acquisition would continue CVS' effort to grow from its pharmacy-chain roots to other sectors of the health industry. In 2018, the Woonsocket, Rhode Island, company purchased health insurer Aetna for $69 billion.
CVS will pay $30.50 per share in cash for Signify. According to a CVS presentation, the deal has a stock value of $7.6 billion, with the total transaction rising to about $8 billion with debt, equity appreciation rights and other items are included.
CVS will also scoop up Caravan Health, which Signify agreed to buy earlier this year. Caravan works with accountable-care organizations, which are groups of hospitals, doctors and other providers who serve Medicare patients.
The deal is subject to regulatory approval and a vote of Signify shareholders. CVS said private equity funds affiliated with New Mountain Capital, which owns about 60% of Signify stock, have agreed to vote their shares for the deal.
The companies said they expect the deal to close in the first half of next year.
CVS said executives would discuss the transaction in a call with analysts on Tuesday.