CVS Health has beat its rivals Amazon and Walmart to acquire in-home healthcare firm Signify Health for approximately $8bn.
The deal, which both companies confirmed on Monday, means that CVS will pay $30.50 a share in cash for Signify.
Signify provides technology and analytics to help with in-home patient care in the US.
“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.
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Both CVS’ rivals Amazon and Walmart are making heavy investments in the healthcare sector, the former announcing a deal to purchase primary care provider One Medical for $3.9bn in July.
Since news of the upcoming acquisition, Signify has seen its share price surge nearly 45% over the last month to give it a market cap of around $6.7bn.
Last month, CVS revealed plans to acquire or take a stake in a primary-care company by year’s end.
If given the green light by regulators, the deal is expected to close within the first half of next year.
A separate private equity firm, New Mountain Capital, currently owns about 60% of Signify’s common stock and has given its support to the deal, the companies announced.
