CVS Health has reached a deal to acquire Signify Health for about $8 billion, both companies said Monday.
CVS said it will pay $30.50 a share in cash for home health care services firm Signify, an acquisition that would build on its growing services. The announcement comes as competitors move further into the health-care sector.
“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,” CVS Health President and CEO Karen Lynch said in a news release. “In addition, this combination will strengthen our ability to expand and develop new product offerings in a multi-payer approach.”
The deal is subject to approval from Signify Health’s shareholders and is expected to close in the first half of 2023.
Signify Health’s shares have surged nearly 45% over the last month to give it a market value of about $6.7 billion at $28.77 a share as of Friday’s close.
Signify Health CEO Kyle Armbrester will continue in his role after the deal closes.