CVS to Acquire Home Health Giant Signify Health for Roughly $8B
CVS Health has reached a deal to acquire in-home healthcare company Signify Health for about $8 billion, reports CNBC. CVS said it will pay $30.50 a share in cash for Signify, an acquisition that would enable the pharmacy chain to offer care to more customers in their homes. Signify offers patient care through virtual and in-person visits, using technology and analytics to power its service, and expects to visit nearly 2.5 million patients this year.
Signify will operate as a separate business within the larger company and serve its existing network of clients from over 50 health plans, the company said. The companies expect the acquisition, which is subject to regulatory approval, to close in the first half of next year. CVS Chief Financial Officer Shawn Guertin described the acquisition as “an anchor asset” that would help the drugstore giant reach more patients and improve the quality of care.
Total Retail's Take: The integration of retail and healthcare isn't slowing down anytime soon, as CVS' acquisition of Signify joins competitors from Amazon.com to Walgreens in moving further into the healthcare sector. Amazon announced in July it was acquiring One Medical, a membership-based chain of boutique doctor offices, and Walgreens is building hundreds of doctor offices next to its drugstores through a partnership with VillageMD, a primary-care company that it acquired a majority stake in.
For the past several years, CVS has added to its portfolio of healthcare companies and tacked on more services to its physical store locations. For example, CVS acquired insurer Aetna and pharmacy benefits manager Caremark. The pharmacy retailer made the decision last year to close 900 stores as it looks to turn its brick-and-mortar locations into destinations that offer a wider range of healthcare services. The Signify buy is "the first step on our journey to build a differentiated health services organization to transform how care is delivered," said Guertin. He also believes there's a big benefit to meeting patients in their homes to deliver care. “There’s a renaissance going on with the house call and we’re really pushing it across the market and making a real impact in individuals lives,” Guertin commented.
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.