CVS Health Expands Home Healthcare Portfolio With $8B Signify Health Acquisition

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CVS Health Corp CVS has agreed to acquire Signify Health Inc SGFY for $30.50 per share in cash, representing a total transaction value of approximately $8 billion.

  • Signify Health offers Health Risk Assessments, value-based care, and provider enablement via a network of over 10,000 clinicians across all 50 states.
  • In 2022, Signify Health's clinicians expect to connect with nearly 2.5 million unique members in the home, both in-person and virtually. On average, they spend 2.5 times longer with a patient in the home than providers spend in the average primary care office visit.
  • Since acquiring Caravan Health in March, Signify Health has expanded its focus on value-based care and population health. 
  • Following the close of the transaction, Kyle Armbrester will continue to lead Signify Health as part of CVS Health. 
  • CVS Health expects to fund the transaction with existing cash from its balance sheet.
  • CVS Health and Signify Health anticipate that the transaction will close in the first half of 2023.
  • "We expect the acquisition to be meaningfully accretive to earnings and, as a result, are increasingly confident we can achieve our long-term adjusted EPS goals as outlined at our Investor Day in December 2021," said CVS Health EVP & CEO Shawn Guertin.

Price Action: CVS shares closed at $99.44 on Friday. SGFY shares are up 1.18% at $29.11 during the premarket session on the last check Tuesday.

Photo: Courtesy of Mike Mozart on flickr

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