CVS Health entered into a definitive agreement Sept. 5 to acquire Signify Health, a home health company, for about $8 billion.
Six details:
1. CVS Health beat out bids from Amazon and other large companies eyeing Signify. UnitedHealth Group was also reportedly interested in Signify, but may not have entered an official bid, according to The Wall Street Journal.
2. Signify's market capitalization was about $6.7 billion on Sept. 2, up from $4 billion in early August. CVS Health agreed to pay $30.50 per share in a cash transaction expected to close in the first half of 2023.
3. The deal will bring Signify's nationwide value-based provider network with more than 10,000 clinicians into CVS Health's portfolio. Signify's network of 50 health plan clients and members will also join CVS Health.
4. Signify's clinicians are on track to connect with 2.5 million unique members for virtual and in-person home health, and their clinicians on average spend 2.5 times longer with patients than the average primary care office visit.
5. Caravan Health, which Signify acquired in March, partners with 170 providers participating in an ACO serving Medicare beneficiaries. The Caravan business is expected to serve ACOs representing 700,000 people by 2023.
6. Kyle Armbrester plans to stay on as the leader of Signify after it becomes part of CVS Health.