CVS Health Continues M&A Spree, As It Is Close To $10B Bet For Oak Street Health

  • CVS Health Corp CVS is reportedly close to an agreement to buy primary care center operator Oak Street Health Inc OSH for about $10.5 billion, including debt.
  • If goes through, the deal could be announced as soon as this week.
  • The Wall Street Journal report added that the companies are discussing a price of about $39 a share.
  • Bloomberg News reported last month that CVS was exploring a deal for Oak Street Health.
  • Oak Street Health runs primary care centers across the U.S. for recipients of Medicare, the U.S. government insurance program for Americans aged 65 and older.
  • Private equity firms General Atlantic and Newlight Partners collectively own roughly 39% of the company, data compiled by Bloomberg shows.
  • CVS had also expressed interest in expanding into the primary care space and was reportedly among the bidders to acquire primary care provider Cano Health before backing out.
  • The two acquisitions, including Signify Health for $8 billion, would push CVS, the Aetna health-insurance operation and a pharmacy-benefit manager, far deeper into direct healthcare provision.
  • CVS Chief Executive Karen Lynch had reportedly signaled that primary and home-based care are key growth areas for the company.
  • Price Action: OSH shares are up 35.29% at $35.12 during the premarket session on the last check Tuesday.
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