Deal would help CVS fulfill its ambition to become even bigger provider of medical services
WSJ News Exclusive
By Cara Lombardo , Laura Cooper and Sharon Terlep
Updated Aug. 7, 2022
CVS could face competition from other managed-care providers and private-equity firms in bidding for Signify Health.
PHOTO: SPENCER PLATT/GETTY IMAGES
CVS Health is seeking to buy Signify Health according to people familiar with the matter, as the drugstore and insurance giant looks to expand in home-health services.
Signify Health is exploring strategic alternatives including a sale, The Wall Street Journal reported this past week.
Initial bids are due this coming week and CVS is planning to enter one, some of the people said.
Others also are in the mix, they said, and CVS could face competition from other managed-care providers and private-equity firms.
CVS, parent of the eponymous drugstores and the Aetna health-insurance operation, had eyed a deal for the parent of One Medical, people familiar with the matter said, before Amazon.com Inc. agreed to buy the primary-care clinic operator for about $3.9 billion last month.
CVS, parent of the eponymous drugstores and the Aetna health-insurance operation, had eyed a deal for the parent of One Medical, … before Amazon.com Inc. agreed to buy the primary-care clinic operator for about $3.9 billion last month.
Signify uses analytics and technology to help health plans, employers, physician groups and health systems with in-home care.
It also offers in-home health evaluations for Medicare Advantage and other government-run managed-care plans.
At the close of its deal this year to buy Caravan Health Inc., Signify said it supported roughly $10 billion in total medical spending.
Signify went public in February 2021. Even after rallying recently, the shares, which closed Friday at $19.87, are below their $24 IPO price. In July, the company said it planned to wind down one of its units after changes to a government-payment model and focus on more-profitable businesses.
New York-based private-equity firm New Mountain Capital is an investor in Signify after first backing it in 2017.
The firm is well-versed in the sector, having sold healthcare payments firm Equian LLC to UnitedHealth Group Inc. for about $3.2 billion in 2019.
Originally published at https://www.wsj.com on August 7, 2022.
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