CVS and Signify's $8 billion deal expected to close this week
The acquisition strategically aligns CVS to the ongoing trend of home health for an aging population.
Photo: Mario Tama/Getty Images
CVS Health has announced that it expects to complete its $8 billion acquisition of Signify Health on or around March 29, subject to the satisfaction or waiver of the remaining customary closing conditions set forth in the merger agreement.
The companies entered into a definitive agreement in September 2022 under which CVS Health announced it would acquire Signify Health for $30.50 per share in cash for a total transaction value of approximately $8 billion.
Upon completion of the acquisition, Signify Health will continue to operate as a payor-agnostic business as part of CVS Health.
WHY THIS MATTERS
Signify Health leverages advanced analytics, technology and nationwide healthcare provider networks for value-based payment programs. Its healthcare platform shifts services towards the home, an ongoing trend as baby boomers retire. People 65 and older account for close to 17% of the population, according to the U.S. Census.
Last fall, Signify expanded its at-home diagnostics segment for Medicare and Medicaid members. It now has diagnostics for chronic obstructive pulmonary disease, peripheral arterial disease, colorectal cancer, chronic kidney disease, diabetes and low bone density (osteopenia and osteoporosis), according to Seeking Alpha.
In March 2022, Signify completed the acquisition of Caravan Health, a population health management company involved in enabling accountable care organizations to manage risk and coordinate care.
In December 2022, Signify expanded its collaboration with Ardent Health Services, which has more than 200 sites of care operating across six states, according to the Seeking Alpha report. Ardent manages risk and provides coordinated care for Medicare beneficiaries, which aligns with the Centers for Medicare and Medicaid Services' objective of rolling all Medicare beneficiaries into an accountable relationship over the coming decade, the report said.
THE LARGER TREND
In September, CVS Health announced it would acquire Signify Health, besting Amazon, UnitedHealth Group and others in acquiring the home health platform. Signify was reportedly for sale by auction, with board members holding a meeting on Labor Day to discuss the bids.
Kyle Armbrester, CEO of Signify Health, is expected to continue leading Signify Health as part of CVS Health.
Private equity funds affiliated with New Mountain Capital, which owns approximately 60% of the common stock of Signify Health, agreed to vote the shares they own in favor of the transaction.
Twitter: @SusanJMorse
Email the writer: SMorse@himss.org
Stephanie Chia, Russ Hinz and Susan Tolin will offer more detail in the HIMSS23 session "Equity on Chicago's South Side: Connected Care Technology." It is scheduled for Wednesday, April 19 at 1 p.m. - 2 p.m. CT at the South Building, Level 1, room S103.
