Negotiations Said to Move Forward in $8B Bid by CVS for Signify Health

cvs, signify health, bid, acquisition, health tech

Once Signify Health indicated it was open to a sale early last month, several big brands — CVS, Amazon, UnitedHealth Group — have shown interest, but CVS seems to have taken the lead and could be moving forward with discussions.

CVS is reportedly in advanced talks to secure an estimated $8 billion acquisition deal with Signify Health, a health tech company focused on home care, the Wall Street Journal reported on Friday (Sept. 2), citing unnamed sources with insider information.

See also: CVS Reportedly Eyeing Signify Health to Expand Into Medical Services

Venturing into the home health services space is something CVS expressed interest in accomplishing before the end of the year, PYMNTS reported last month. Signify Health uses analytics and tech to help health plans, employers, physician groups and health systems with in-home care.

Purchase bids for Signify Health are supposed to be due on Tuesday (Sept. 6), but a buyer could seal the deal before then, one source told the WSJ.

Read more: Signify Health Bidders Offer Competing Visions of Healthcare’s Future

Amazon, CVS Health and UnitedHealth are all working on establishing value-based healthcare offerings, PYMNTS reported on Aug. 22. At that time, Amazon had just reportedly entered the bidding ring for Signify.

Signify posted strong second-quarter 2022 financials and its valuation and share price has been escalating alongside acquisition interest, the WSJ reported.

“Signify Health does not comment on market rumors or speculation,” a spokesperson for the company told PYMNTS by email on Friday (Sept. 2).

Related: CVS Moves Closer to Offering Primary Healthcare

Acquiring or taking a stake in a primary-care company before the year is over is something CVS is planning to do before 2022 closes, PYMNTS reported. The company has said that its preference would be to work with a provider who can scale quickly, and has a strong management team and a background in tech.

“We don’t comment on rumors or speculation,” a CVS spokesperson told PYMNTS by email.