Primary care disruptor VillageMD, which is majority owned by Walgreens Boots Alliance, has agreed to acquire physician practice group Summit Health in a transaction worth roughly $8.9 billion.
The deal combines Village Practice Management with Summit Health, the parent company of CityMD urgent-care centers, according to a Nov. 7 press release from Walgreens Boots Alliance.
Walgreens Boots Alliance has invested $3.5 billion, through a mix of debt and equity, to support the acquisition, making it the largest and consolidating shareholder of VillageMD with approximately 53 percent ownership.
Payer Cigna has also invested in the combined company and will serve as a minority owner in VillageMD.
The transaction is still subject for review, but is expected to close in the first quarter of 2023.
Summit Health, formed by the 2019 merger of Summit Medical Group and CityMD, has more than 370 primary, specialty and urgent care locations across New Jersey, New York, Connecticut, Pennsylvania and Oregon, according to its website.