CVS said it will pay $30.50 a share in cash for Signify, an acquisition that would build on its growing health-care services. Signify offers patient care through virtual and in-person visits, using technology and analytics to power its service.
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.
"We could not be more pleased to have Signify be the first step on our journey to build a differentiated health services organization to transform how care is delivered," he said on an investor call on Tuesday.
The deal comes as competitors from Amazon to Walgreens are moving further into the health-care sector. Amazon announced in July it was acquiring One Medical, a membership-based chain of boutique doctor offices, for about $3.9 billion. 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.
Signify Health's shares have surged nearly 45% over the last month to give it a market value of about $6.7 billion at $28.77 a share as of Friday's close, according to FactSet. The Wall Street Journal reported on Aug. 2 that Signify was exploring strategic alternatives, including a sale.
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