Rhode Island-based pharmacy giant CVS Health announced it has completed its acquisition of Dallas-based Signify Health, a leading technology and services company, in an $8 billion deal first announced in September.
“This transaction advances our value-based care strategy by enhancing our presence in the home,” CVS Health President and CEO Karen S. Lynch said in a statement. “Our expanded capabilities will bring us closer to the consumer as we continue to redefine how people access and experience care that is more affordable, convenient and connected.”
The proposed acquisition was first announced last fall, with CVS Health beating out other big-name suitors in a bidding war last summer. Signify Health, led by CEO Kyle Armbrester, who will continue at the helm, has a major network of clinicians, physicians, nurse practitioners, and physician assistants who use home-based visits to identify a patient’s clinical and social needs.
Reuters reported that the deal’s closing was delayed by a Department of Justice review over antitrust concerns.
Driving better health outcomes
Signify seeks to close gaps in care and address social determinants of health. Its network has more than 10,000 clinicians in all 50 states, who spend an average of 2.5 times longer with a member during home visits than an average visit with a primary care provider.
The combined company will work to improve care delivery capabilities, lower costs, improve levels of engagement, and enable broad access to high-quality care, especially for Medicare Advantage customers, CVS said.
The companies said that Signify clinicians can have a much greater impact by engaging with CVS Health’s unique collection of assets and connecting consumers to care how and when they need it.
“Our mission has always been to build trusted relationships to make people healthier,” Armbrester said in a statement. “As part of CVS Health, we will be uniquely positioned as a payer-agnostic business to support a more proactive, preventive and holistic approach to patient care.”
The acquisition of Signify will deliver an excellent health care experience and drive better health outcomes, CVS Health said.
“We’re excited to welcome the Signify team to CVS Health,” Lynch said. “I’m confident our shared values and complementary capabilities will work together to better address patient needs.”
Under the terms of the deal, each outstanding share of Signify Health common stock is being exchanged for $30.50 in cash, representing a total transaction value of roughly $8 billion.
CVS Health said it funded the transaction price with existing cash and available resources and is committed to maintaining its current credit ratings.
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