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September 6, 2022

CVS to purchase Signify Health for $8B

PHOTO | CONTRIBUTED Signify Health has its executive office in Norwalk at 800 Connecticut Ave.
By Andrew Larson

CVS Health Corp. has agreed to buy Signify Health, a home health care services company, in a $8 billion deal announced Monday.

CVS and Signify Health have significant presences in Connecticut. Aetna, based in Hartford, is owned by CVS, and Dallas-based Signify Health has its principal executive office in Norwalk.

The acquisition reflects CVS’s shift away from retail stores and into health care. The pharmacy chain said last year that it would close roughly 900 stores over three years, according to the New York Times.

"Signify Health will play a critical role in advancing our health care services strategy and gives us a platform to accelerate our growth in value-based care," CVS Health President and CEO Karen S. Lynch said in a statement. 

CVS will acquire Signify Health for $30.50 per share in cash. CVS Health beat out at least two other suitors, Amazon.com Inc. and UnitedHealth Group Inc., which were vying for Signify Health in an auction.Signify Health runs a network of doctors, nurses and physician assistants who provide in-home care. CVS has nearly 10,000 stores nationwide, including 1,000 MinuteClinic locations.

Contributed
Signify Health CEO Kyle Armbrester

"Signify Health's mission is to build trusted relationships to make people healthier by using actionable intelligence to understand what's really impacting outcomes and cost today,"
CEO Kyle Armbrester said.

Armbrester will continue to lead Signify Health as part of CVS Health. 

The transaction, approved by the board of directors of each company, is expected to close in the first half of 2023 pending regulatory approvals.

Signify Health recently scaled back its operations. Last month, it notified the state Department of Labor this month that it planned to reduce its workforce by 489 positions, some of which are in Norwalk.

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