Done Deal: CVS Health completes acquisition of Signify Health
![signify health logo](gif/signify_health_logo4494.gif)
CVS Health has officially made its biggest push yet into the home health care space as it continues to expand beyond its retail roots.
The retail pharmacy and health insurance has completed its acquisition of Signify Health. Under the terms of the deal, each outstanding share of Signify Health common stock is being exchanged for $30.50 in cash, for a total transaction value of approximately $8 billion.
Signify provides technology and analytics to help with in-home patient care. It also has a network of more than 10,000 clinicians across all 50 states — including physicians, nurse practitioners and physician assistants — who make home-based visits to identify a patient's clinical and social needs, and then connect them to appropriate follow-up care and community-based resources.
"This transaction advances our value-based care strategy by enhancing our presence in the home," said Karen S. Lynch, president and CEO, CVS Health. “Our expanded capabilities will bring us closer to the consumer as we continue to redefine how people access and experience care that is more affordable, convenient and connected."
The combined company will work to improve care delivery capabilities, lower costs, improve levels of engagement and enable broad access to high-quality care, especially for Medicare Advantage customers, according to a release. Signify clinicians can have an even greater impact by engaging with CVS Health's unique collection of assets and connecting consumers to care how and when they need it.
Walgreens, Walmart and Amazon are also active in the space. In October 2022, Walgreens’s majority-owned VillageMd, agreed to buy Summit Health-CityMD in a deal valued at approximately $8.9 billion. In addition to CityMD urgent care centers, Summit Health operates independent physician-run medical groups.
In July 2022, Amazon said it would acquire One Medical, a membership-based primary health care provider, for $3.9 billion. And Walmart continues to expand its freestanding health care format, recently announcing plans to nearly double its footprint.
CVS Health funded the Signify transaction with existing cash and available resources and is committed to maintaining its current credit ratings.