CVS Health (NYSE: CVS) announced that it will complete its $8 billion acquisition of Signify Health (NYSE: SGFY) this week.
“CVS Health today announced it expects to complete its acquisition of Signify Health on or around March 29, 2023, subject to the satisfaction or waiver of the remaining customary closing conditions set forth in the merger agreement,” the company wrote in a press release Monday.
The deal was first announced in September 2022. Specifically, CVS Health agreed to purchase Signify for $30.50 per share. Once the deal is completed, Signify will “continue to operate as a payer-agnostic business as part of CVS Health,” according to the release.
Based in Dallas, Signify is a value-based platform that offers at-home health risk assessments, among other services. It leverages analytics, technology, health care provider networks and its over 10,000 clinicians to power value-based payment programs.
“This acquisition will enhance our connection to consumers in the home and enables providers to better address patient needs as we execute our vision to redefine the health care experience,” CVS Health CEO Karen Lynch said in September. “In addition, this combination will strengthen our ability to expand and develop new product offerings in a multi-[payer] approach.”
The U.S. Department of Justice requested more information about the deal in October. But, all things considered, the deal ending up going through with relative ease.
With the Signify addition, CVS Health has gained significant at-home care capabilities. Its retailer peers have also sought to do the same of late, the most notable examples being UnitedHealth Group’s (NYSE: UNH) acquisition of LHC Group and Walgreens Boots Alliance’s (Nasdaq: WBA) acquisition of the post-acute care convener CareCentrix.
CVS also has Aetna – one of the largest health insurers in the country – as part of its network, as well as Caremark, which is its prescription benefit management subsidiary.
“We’re pretty excited about the opportunity to become part of the CVS Health organization,” Signify Chief Medical Officer Dr. Marc Rothman told Home Health Care News in December. “They bring just so many exciting capabilities and opportunities for us.”
The next year should bring insight into how some of the largest companies in the U.S. plan to leverage home-based care. Rothman and his team are excited to watch that unfold as well.
“We feel like it’s a really great partnership,” he continued. “And we definitely feel like we have some resources and capabilities that they don’t have. And it should be a really nice, complementary match. The leadership team is excited. I’m personally excited. And I do think that our clients and our providers in the field are excited, too.”