CVS Health Corp. is nearing a deal to buy home-health and technology services provider Signify Health Inc. for about $8 billion, according to a person familiar with the matter.
(Bloomberg) — CVS Health Corp. is nearing a deal to buy home-health and technology services provider Signify Health Inc. for about $8 billion, according to a person familiar with the matter.
The companies could announce a deal as soon as next week that would value Signify at more than $30 a share, said the person, asking to not be identified because the discussions are private. A final agreement hasn’t been reached and Signify could still receive and accept a competing bid or decide to remain independent, the person added.
Suitors including UnitedHealth Group Inc., Amazon.com Inc. and Option Care Health Inc. had also been pursuing Signify, Bloomberg News reported last month.
Representatives for Signify and CVS declined to comment.
Signify rose 1.3% to close at $28.77 in New York trading Friday, giving it a market value of about $6.7 billion.
Through its software and services, Signify aims to help clients — payers like health plans, government programs and employers — shift to value-based payment plans. It’s backed by New Mountain Capital, which formed the company in 2017, according to the private equity firm’s website.
The Wall Street Journal reported earlier that CVS was in advanced talks to buy Signify.
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