CVS buys home care provider Signify for $8 billion

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DALLAS (AP) — Pharmacy operator CVS Health Corp. announced on Monday that it would buy home care provider Signify Health for $8 billion.

CVS said 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 with consumers in the home and enable providers to better meet patient needs as we execute on our vision to redefine the healthcare experience,” CVS CEO Karen Lynch said in a statement. a press release announcing the agreement.

The acquisition would continue CVS’s efforts to move from its drugstore chain roots into other areas of the healthcare industry. In 2018, Woonsocket, Rhode Island, bought 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 an in-stock value of $7.6 billion, with the total transaction amounting to approximately $8 billion, debt, stock appreciation rights and other items. being included.

CVS will also pick 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 by Signify shareholders. CVS said private equity funds affiliated with New Mountain Capital, which owns about 60% of Signify’s shares, 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 on a call with analysts on Tuesday.

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