CVS Considers Acquisition of Home Health Giant Signify

CVS Health Corp is seeking to buy Signify Health Inc as it looks to expand in-home health services, the Wall Street Journal reported on Sunday, citing sources.

Signify Health is working with bankers to explore strategic alternatives, including a sale, the Journal reported last week.

Initial bids are due this coming week, and CVS is planning to enter one, the report said. Signify has a market cap of around $4.66 billion based on its stock closing price on Friday, according to Refinitiv calculations.

CVS, which runs drugstores and provides health insurance, is among the companies seeking to submit initial bids this week, the Wall Street Journal wrote Sunday. The Journal reported last week that Signify, which had a stock-market capitalization of $4.66 billion as of Friday, was exploring strategic alternatives including a possible sale.

Through its software and services, Signify aims to help clients — payers like health plans, government programs and employers — shift to value-based payment plans. These arrangements are intended to improve care and reduce spending by treating patients in lower-cost settings and linking providers’ payments to patient outcomes. An acquisition may align with CVS Chief Executive Officer Karen Lynch’s move toward more interaction with patients, including primary care locations in its chain of drugstores.

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