Direct primary care provider VillageMD, majority owned by Walgreens Boots Alliance, has entered into a definitive merger agreement with healthcare provider Summit Health for USD 8.9 billion. The merger will be funded by Walgreens Boots Alliance and Evernorth and the deal is expected to be finalized by early 2023. 

Under the acquisition, the combined company will offer care services in more than 680 provider locations in 26 markets.

With its additional investment of USD 3.5 billion to support this acquisition, Walgreen remains the majority shareholder with 53% ownership. In October 2021, Walgreens invested USD 5.2 million in VillageMD and opened more than 80 Village Medical clinics at Walgreens primary care practices across 12 markets. The two companies have planned to open 200 practices by the end of 2022, with a long-term target of 600 co-located practices across 30 markets by 2025.  

In 2019, Summit Health was formed through the merger of primary care provider Summit Medical Group with urgent care provider CityMD. It provides primary, specialty, and urgent care in 370 locations across five states including New York and New Jersey.