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CVS beats out Amazon for Signify Health
, author of Illustration: Gabriella Turrisi/Axios CVS Health has agreed to acquire Dallas value-based care enabler Signify Health for approximately $8 billion. Why it matters: After losing out on One Medical to Amazon and watching Walgreens make bets on VillageMD and CareCentrix, CVS has finally gained a major foothold in health care delivery. Zoom in: CVS has been outspoken about its intent to move closer to the patient, away from its historical roots. Signify moves CVS away from the pharmacy — and into the home. Through the deal, CVS gains access to 10,000-plus clinicians nationwide that provide health and wellness visits to nearly 2.5 million patients in the home. How it works: Signify helps health systems and health plans move to value-based care arrangements by creating risk contracts where it shares in both upside and downside risk. Details: CVS on Monday agreed to acquire Signify for $30.50 per share.New Mountain Capital, which owns a 60% stake in Signify Health, agreed to vote in favor of the transaction.CEO Kyle Armbrester will continue to lead Signify as part of CVS. BAML advised CVS, while Goldman Sachs and Deutsche Bank, , are advising Signify. Context: This is the pharmacy retailer's largest M&A move in health care since buying Aetna in a $69 billion deal completed in 2018.It scooped up Caremark RX for around $27 billion in 2007.CVS was the , which went to Amazon for $4 billion in July. Of note: CVS is seeking a buyer for BSwift, the benefits technology business it acquired eight years ago. Sarah Pringle co-authors the Axios Pro Health Tech deals newsletter. Start your free trial at.
