Drugstore operator CVS Well being Corp. mentioned Monday that it's going to purchase home-health supplier Signify Well being for $8 billion.
CVS mentioned Signify has greater than 10,000 workers together with physicians and nurses, a presence in each state, and affords expertise platforms.
"This acquisition will improve our connection to shoppers within the dwelling and permits suppliers to higher deal with affected person wants as we execute our imaginative and prescient to redefine the well being care expertise," CVS CEO Karen Lynch mentioned in a press release asserting the deal.
The acquisition would proceed CVS' effort to develop from its pharmacy-chain roots to different sectors of the well being trade. In 2018, the Woonsocket, Rhode Island, firm bought well being insurer Aetna for $69 billion.
CVS can pay $30.50 per share in money for Signify. In accordance with a CVS presentation, the deal has a inventory worth of $7.6 billion, with the overall transaction rising to about $8 billion with debt, fairness appreciation rights and different gadgets are included.
Signify Well being shares had been up 0.4% on the announcement, whereas CVS shares dipped 0.3% — in step with the general market which is in a droop following the Labor Day vacation.
CVS may even scoop up Caravan Well being, which Signify agreed to purchase earlier this yr. Caravan works with accountable-care organizations, that are teams of hospitals, docs and different suppliers who serve Medicare sufferers.
The deal is topic to regulatory approval and a vote of Signify shareholders. CVS mentioned non-public fairness funds affiliated with New Mountain Capital, which owns about 60% of Signify inventory, have agreed to vote their shares for the deal.
The businesses mentioned they anticipate the deal to shut within the first half of subsequent yr.
CVS Well being in November 2021 introduced it can be closing about 300 shops a yr for the subsequent three years, because it adjusted to altering buyer wants. Analysts on the time famous that the retail big would wish to put money into its retail places and well being care companies to make sure its future.