CVS Health has completed its acquisition of Signify Health for $8bn. Signify shareholders will receive $30.50 per share in cash, a 6% premium. Although the firm was bought back in September 2022, it was only until the end of March the acquisition was completed.
CVS Health Corporation is an American healthcare company that owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; and Aetna, a health insurance provider, among many other brands. The company is the world's largest healthcare company, and its headquarters are in Woonsocket, Rhode Island.
Signify Health is a leader in Health Risk Assessments, value-based care and provider enablement. Notably, they have strong consumer outreach with a network of more than 10,000 clinicians across all 50 states and a nationwide value-based provider network. In addition, their use of technology and advanced data analytics are able to significantly improve patient engagement, patient outcomes and care coordination.
Clearly, CVS is keen to take advantage of such strengths: "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," said CVS Health President and CEO, Karen S. Lynch. In addition, the merger will work to improve care delivery capabilities, lower costs, improve levels of engagement, and enable broad access to high-quality care, especially for Medicare Advantage customers.
Signify Health CEO Kyle Armbrester, who will continue to lead the company, said, "As part of CVS Health, we will be uniquely positioned as a payor-agnostic business to support a more proactive, preventive and holistic approach to patient care." He added that the mission of Signify Health has always been to build trusted relationships to make people healthier.
The acquisition of Signify Health is an important step for CVS Health in expanding its presence in the home and improving care delivery capabilities. By combining its unique collection of assets with Signify Health's network of clinicians, CVS Health can provide a more proactive, preventive, and holistic approach to patient care.
Written by Siya Goyal
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