CVS to buy home healthcare provider Signify for $8 billion – InsuranceNewsNet

DALLAS (AP) — Pharmacy Operator CVS Health Corp. said on Monday he would buy a 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,” said CVS CEO. Karen Lynch said in a statement announcing the deal.

The acquisition would continue CVS’s efforts to move from its drugstore chain roots into other areas of the healthcare industry. In 2018, the Woonsocket, Rhode Islandthe company has purchased health insurance Etna for $69 billion.

CVS will pay $30.50 per cash share for Signify. According to a CVS presentation, the transaction has an inventory value of $7.6 billionthe total transaction amounting to approximately $8 billion along with debt, equity appreciation rights and other items are included.

CVS will also retrieve Health Caravan, 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 capitalwhich 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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