- CVS announced on Monday that it is buying home healthcare company Signify Health for $8 billion.
- The pharmaceutical giant previously said it would expand its healthcare services by the end of 2022.
- Companies have entered into a flurry of health care deals; Amazon is buying One Medical for $3.9 billion.
Pharmacy giant CVS said on Monday it was buying Dallas, Texas-based homecare company Signify Health in a deal worth $8 billion, a move that underscores the fierce competition between tech and healthcare giants to push medical services more aggressively.
Signify Health works with a network of some 10,000 physicians across the United States and provides home visits to patients. The company expects to conduct nearly 2.5 million in-person and virtual patient home visits in 2022, according to an investor presentation on the CVS website.
Amazon and UnitedHealthcare also circled Signify Health, The Wall Street Journal reported last month. In July, Amazon announced it would buy primary care startup One Medical for $3.9 billion.
Rhode Island-headquartered CVS told investors it wanted to get more involved in healthcare for customers.
Chief Executive Officer Karen Lynch told analysts on the second quarter earnings call last month that she plans to improve the company’s health services in primary care, empowerment providers and home health.
“We can’t be in primary care without mergers and acquisitions. We’ve been very clear about that,” Lynch said, referring to mergers and acquisitions, adding that “we’re very encouraged and confident that we’ll get through the next stage on this journey by the end of this year.”
The company has been “very active in evaluating a wide range of assets in and around the care delivery space,” CVS Chief Financial Officer Shawn Guertin added, according to a transcript from the research provider. Sentio.
CVS said Monday the deal is expected to close in the first half of 2023 and Signify Health CEO Kyle Armbrester will continue to lead the company under the CVS Health banner. Signify Health went public in February 2021 at $24 per share, and by the end of 2021 its stock price had fallen to around $14.