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CVS Health has agreed to buy home healthcare provider Signify Health for around $8 billion, beating Amazon in a hotly contested takeover battle and opening a new front in the drugstore chain’s efforts to become a juggernaut. diversified health care.

Signify shareholders will receive $30.50 per share in cash, a 6% premium to the company’s stock price at Friday’s close.

The Dallas, Texas-based company has a network of 10,000 clinicians across the United States who provide home health assessments to a wide range of patients, including those covered by the Medicare-funded program. government.

“Signify Health will play a critical role in advancing our healthcare services strategy and provide us with a platform to accelerate our growth in value-based care,” said CVS Health CEO Karen Lynch.

CVS was already the largest drugstore chain in the United States when in 2019 it bought insurance group Aetna in what it said was an effort to create a heavyweight company with the power to reduce health care costs in America.

This transaction marked a consolidation trend in the US healthcare industry. CVS’s biggest rival, UnitedHealth Group, also announced deals for companies active in home health care and other clinical services.

Analysts say the vogue for diversified healthcare companies reflects incumbents’ need to rein in cost inflation and defend against potential disruptors. Amazon had also been among the bidders for Signify, the Financial Times and other outlets previously reported.

Learn more about the CVS agreement here.

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