• CVS Health has won a bidding war against Amazon and UnitedHealth Group to acquire home health and caregiving technology provider Signify Health for USD 8 billion (USD 30.50 per share) in an all-cash deal. Specifically, CVS’ proposal was approved by the Board of Directors, and is subject to regulatory and Signify Health’s shareholder approval. Management expects the acquisition to close in early 2023. The proposed acquisition will help CVS advance its healthcare strategy to expand its presence in the in-home healthcare space and to address patient needs more efficiently.

• Publicly listed Signify Health is a technology platform for caregivers and healthcare providers that enables in-home health risk assessments, value-based care, and provider connections with payers and other providers. Its network of over 10,000 providers spans all 50 states. So far in 2022, the company has connected with approximately 2.5 million members both in-person and online. Post-acquisition, Kyle Ambrester will remain as CEO of Signify Health under CVS Health. 

<ul><li> Analyst Quicktake : This deal marks the latest in a trend of pharmacy and other health-related companies that are expanding into the home health sector. Firstly, Walgreens Boots Alliance Inc. completed its investment for a majority stake in-home care provider CareCentrix last week for USD 330 million. Prior to this, UnitedHealth agreed to buy LHC Group Inc, a national provider of in-home health care services, for about USD 5.4 billion in March 2022. Going forward, competition for potential investments and acquisitions should remain high with significant players looking to expand and consolidate within home-health care including Big Tech companies such as Amazon.</ul>