CVS Health To Buy Signify Health In $8 Bln Deal

(RTTNews) - Drugstore chain owner CVS Health Corp (CVS) agreed to buy home-healthcare company Signify Health Inc (SGFY) for $30.50 per share in cash, representing a total transaction value of about $8 billion.

Following the close of the transaction, Kyle Armbrester will continue to lead Signify Health as part of CVS Health, CVS Health said in a statement.

Private equity funds affiliated with New Mountain Capital, which owns about 60% of the common stock of Signify Health, have agreed to vote the shares they own in favor of the transaction.

CVS Health and Signify Health anticipate that the transaction will close in the first half of 2023.

Earlier this month, the Wall Street Journal reported that CVS Health was in advanced talks to Signify Health Inc for about $8 billion. CVS appeared to have beat out other potential buyers including Amazon.com Inc (AMZN) and UnitedHealth Group Inc (UNH), who had also been circling Signify for a deal.