CVS Health to acquire home health care company Signify Health for $8 billion. … [+]
CVS Health plans to acquire home care company Signify Health for $8 billion.
CVS clearly beat out other healthcare and retail companies such as Amazon and UnitedHealth Group’s Optum medical provider business that were interested in Signify Health, or at least were considering the possibility of adding a home health care company. rice field.
However, CVS announced Monday afternoon that the drugstore giant “has reached a definitive agreement under which CVS Health will acquire Signify Health for $30.50 per share in cash.”
With the acquisition of Signify Health, CVS Health will gain access to over 9,000 retail drugstores, 1,100 nurse-staffed MinuteClinics, and a growing portfolio of healthcare services, including Aetna, the third-largest health insurer in the United States. Added to the menu.
CVS calls Signify Health the leader in “Health Risk Assessment” with a network of over 10,000 clinicians in all 50 states. “Signify Health’s clinician network (physicians, nurse practitioners, physician assistants) uses home visits to identify patients’ clinical and social needs and connect them to appropriate follow-up care and community-based resources. to enable patients to receive care, resulting in a more connected and effective care experience.
The effort to add home care providers was a key part of CVS Health’s plans to strengthen its healthcare and technology platform this year.
Karen S. Lynch, president and CEO of CVS Health, said: “This acquisition will strengthen our connection with consumers at home and will enable healthcare providers to better meet the needs of their patients as we execute on our vision of redefining the healthcare experience. In addition, this combination will enhance our ability to expand and develop new product offerings with a multi-pay approach.”
The highly anticipated CVS announcement comes less than a week after rival Walgreens Boots Alliance announced it had completed a $330 million majority stake investment in post-acute and home care company CareCentrix . Walgreens said its $330 million investment in CareCentrix is for an initial 55% stake, with an option to increase stakes in the future.
Deals like this show that retail healthcare providers like CVS, Walgreens, Walmart and Amazon are looking to better meet the outpatient needs of US consumers. In 2022, Signify Health clinicians “expect to connect with approximately 2.5 million unique Her members both in person and virtually at home,” Signify and her CVS said in a statement Monday. says.
Kyle Armbrester, CEO of Signify Health, said: “After careful consideration of our long-term strategic options, we have determined that CVS Health is the ideal partner. We are both building integrated experiences that support a more proactive, preventative, and holistic approach to patient care, and are the future. We look forward to implementing our shared vision for care delivery.”
Both companies said they expect the acquisition to close in the first half of next year. “We expect this acquisition to be meaningfully accretive to our earnings and, as a result, we believe we will be able to achieve the long-term adjusted EPS targets outlined at our December 2021 Investor Day.” CVS Health Chief Financial Officer Shawn Guertin said:
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