CVS in advanced talks to buy Signify Health for about $8 bln -source

CVS Well being emblem is seen displayed on this illustration taken, Might 3, 2022. REUTERS/Dado Ruvic/Illustration/

Sept 2 (Reuters) – Drugstore chain proprietor CVS Well being Corp (CVS.N) is in superior talks to purchase home-healthcare firm Signify Well being Inc (SGFY.N) for about $8 billion, in accordance with an individual conversant in the matter.

CVS is near clinching the deal which could possibly be introduced as early as subsequent week, after beating out different potential consumers together with Amazon.com Inc (AMZN.O) and UnitedHealth Group Inc (UNH.N), who had additionally been circling Signify for a deal, the supply stated.

The supply, who requested anonymity because the discussions had been confidential, cautioned there’s nonetheless no assure that CVS will attain a deal.

The Wall Avenue Journal reported the talks between CVS and Signify earlier on Friday.

CVS, UnitedHealth, Signify Well being and Amazon.com declined to remark.

Signify has been exploring strategic alternate options since earlier this summer season, sources conversant in the matter instructed Reuters beforehand.

Signify, which went public in early 2021, has struggled since its inventory market launch and the corporate’s shares had been buying and selling beneath their IPO value earlier than talks of the sale course of had been first reported in August.

New York-based non-public fairness agency New Mountain Capital is a major investor in Signify, having purchased a stake in 2017.

Signify affords expertise and analytics to assist with at-home look after sufferers. Signify has stated its companies may also help determine potential well being dangers and gaps in care.

For CVS, a take care of Signify would make strategic sense as it will assist doubtlessly enhance care and scale back prices by guaranteeing sufferers obtain the assistance they want after medical procedures to stop new hospitalizations, amongst different issues.

Reporting by Caroline Humer in New York
Further reporting by Leroy Leo and Praveen Paramasivam in Bengaluru
Writing by Anirban Sen
Enhancing by Shounak Dasgupta and Matthew Lewis

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