With more than 10,000 clinicians across all 50 states and a nationwide provider network of more than 50 health plan clients and their members, Signify Health is said to further support CVS Health's payor-agnostic solutions offering


CVS to acquire Signify Health for $8bn. (Credit: Marques Thomas on Unsplash)

CVS Health has signed a definitive agreement to acquire US-based home health care services provider Signify Health in an all-cash transaction valued at around $8bn.

Under the terms of the deal, the retail pharmacy chain owner will acquire all the shares of Signify Health at a price of $30.50 per share in cash.

The transaction, which has been approved by the board of directors of both companies, is expected to be completed in the first half of 2023.

Funds affiliated with New Mountain Capital, which owns around 60% of Signify Health, have agreed to vote in favour of the acquisition, said CVS Health.

The closing of the transaction is subject to certain customary closing conditions, including approval from the majority of Signify Health stockholders, along with regulatory approvals.

The company intends to fund the transaction using available cash and resources from its balance sheet and is committed to maintaining its current credit ratings.

CVS Health president and CEO Karen S Lynch said: “Signify Health will play a critical role in advancing our health care services strategy and gives us a platform to accelerate our growth in value-based care.

“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.

“In addition, this combination will strengthen our ability to expand and develop new product offerings in a multi-payor approach.”

Upon closing of the transaction, Signify Health chief executive officer Kyle Armbrester will be transitioned to CVS Health.

Signify Health is a healthcare platform with more than 10,000 clinicians across all 50 states and a nationwide value-based provider network.

The company leverages advanced analytics, technology, and its nationwide healthcare provider networks to create and power value-based payment programmes.

Its more than 50 health plan clients and their members will further support CVS Health’s payor-agnostic solutions offering for a diverse set of health plan and employer clients.

In addition, Signify Health is expected to further advance its primary care capabilities.

BofA Securities served as a financial advisor, and Fried, Frank, Harris, Shriver & Jacobson, Dechert, and McDermott Will & Emery as advisor legal to CVS Health, on the transaction.

Goldman Sachs & Co. and Deutsche Bank Securities served as financial advisors, while Ropes & Gray as legal advisor to Signify Health.

Signify Health CEO Kyle Armbrester said: “Signify Health’s mission is to build trusted relationships to make people healthier by using actionable intelligence to understand what’s really impacting outcomes and cost today.

“As we carefully considered our long-term strategic options, we determined that CVS Health is the ideal partner, given its focus on expanding access to health services and helping consumers navigate to the best sites of care.

“We are both building an integrated experience that supports a more proactive, preventive and holistic approach to patient care, and I look forward to executing on our shared vision for the future of care delivery.”