A CVS logo is displayed at one of their stores near Bloomsburg.
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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 provides technology and analytics to help with in-home patient care.
“This acquisition will enhance our connection to consumers in the home and enables providers to better address patient needs as we execute our vision to redefine the health care experience,” CVS Health President and CEO Karen Lynch said in a news release.
The deal comes as competitors from Amazon to Walgreens are moving further into the health-care sector. In July, Amazon announced it was acquiring primary-care provider One Medical for about $3.9 billion.
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.
Shares of Signify, which went public in February 2021, surged in late August after reports that Amazon was among the bidders.
Last month, CVS revealed plans to acquire or take a stake in a primary-care company by year's end.
The Signify deal follows other acquisitions and shifts into primary health care. CVS previously acquired insurer Aetna and pharmacy benefits manager Caremark, and customers can get vaccines or urgent care at MinuteClinic outposts inside of its stores. It recently introduced therapy for mental health at some stores.
The companies expect the acquisition, which is subject to regulatory approval, to close in the first half of next year.
Private equity firm New Mountain Capital owns about 60% of Signify's common stock and agreed to support the deal, the companies said.
CVS Health and Signify Health will hold an analyst and investor call at 8:30 a.m. ET on Tuesday to discuss the transaction.