CVS emerged as the winner and closed an $8 billion deal in a hotly contested bid to acquire value-based healthcare solutions platform Signify Health, beating Amazon and UnitedHealthcare as big companies continue pushing into medical services.
Under the definitive agreement, CVS Health will acquire Signify Health for $30.50 per share in cash, according to a press release. Signify Health uses analytics and technology to provide health plans, employers, physician groups, and health systems with in-home care.
“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. In addition, this combination will strengthen our ability to expand and develop new product offerings in a multi-payor approach,” said CVS Health President and CEO Karen S. Lynch.
With a network topping 10,000 medical professionals in every state across the country, Signify Health specializes in value-based care and provider enablement. Headquartered in Dallas, Texas and founded in 2017 by President and CFO Steve Senneff, the company works to improve patient engagement, patient outcomes, and care coordination for stakeholders across the healthcare system.
As part of CVS Health, the professionals at Signify Health will have access to an expanded suite of tools and solutions that connect patients to care. Signify Health’s network of clinicians physicians, nurse practitioners and physician assistants utilize home-based visits to identify a patient’s clinical and social needs. Patients are then connected to appropriate follow-up care and community-based resources.
“Signify Health’s mission is to build trusted relationships to make people healthier by using actionable intelligence to understand what’s really impacting outcomes and cost today,” said Kyle Armbrester, CEO of Signify Health.
“As we carefully considered our long-term strategic options, we determined that CVS Health is the ideal partner, given its focus on expanding access to health services and helping consumers navigate to the best sites of care,” Armbrester said.
Following the close of the transaction, Armbrester will continue to lead Signify Health as part of CVS Health. Signify Health’s more than 50 health plan clients and their members will complement CVS Health’s offering of payor-agnostic solutions for a diverse set of health plan and employer clients.