CVS buys Signify Health for $30.50/share, expanding reach in home healthcare
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CVS Health (NYSE:CVS) said Monday it agreed to acquire Signify Health (NYSE:SGFY) for $30.50/share in cash, for a total transaction value of ~$8B, beating out other potential buyers including Amazon (AMZN) and UnitedHealth (UNH).
The deal will add 10K contracted doctors and clinicians and give CVS (CVS) a hand in coordinating medical care for millions of Americans.
Private equity funds affiliated with New Mountain Capital, which owns ~60% of Signify Health (SGFY) shares, have agreed to vote the shares they own in favor of the deal.
"We expect the acquisition to be meaningfully accretive to earnings and, as a result, are increasingly confident we can achieve our long-term adjusted EPS goals as outlined at our Investor Day in December 2021," CVS Health (CVS) Executive VP and CFO Shawn Guertin said.
CVS Health (CVS) shares are fairly valued and its dividend is not as strong as it once was, Valuentum writes in an analysis posted recently on Seeking Alpha.