CVS in advanced talks to buy Signify Health for about US$8b: source

DRUGSTORE chain owner CVS Health is in advanced talks to buy home-healthcare company Signify Health for about US$8 billion, according to a person familiar with the matter.

CVS is close to clinching the deal which could be announced as early as next week, after beating out other potential buyers including Amazon.com and UnitedHealth Group, who had also been circling Signify for a deal, the source said.

The source, who requested anonymity as the discussions were confidential, cautioned there is still no guarantee that CVS will reach a deal.

The Wall Street Journal reported the talks between CVS and Signify earlier on Friday (Sep 2).

CVS, UnitedHealth, Signify Health and Amazon.com declined to comment.

Signify has been exploring strategic alternatives since earlier this summer, sources familiar with the matter told Reuters previously.

Signify, which went public in early 2021, has struggled since its stock market launch and the company’s shares were trading below their IPO (initial public offering) price before talks of the sale process were first reported in August.

New York-based private equity firm New Mountain Capital is a significant investor in Signify, having bought a stake in 2017.

Signify offers technology and analytics to help with at-home care for patients. Signify has said its services can help identify potential health risks and gaps in care.

SEE ALSO

US FDA authorises 2 Covid boosters targeted at Omicron subvariants

For CVS, a deal with Signify would make strategic sense as it would help potentially improve care and reduce costs by ensuring patients receive the help they need after medical procedures to prevent new hospitalisations, among other things. REUTERS