CVS logo on smartphone

Pharmacy giant CVS Health disclosed Monday that it will acquire tech-enabled home care firm Signify Health for $30.50 a share in cash, representing a total transaction value of about $8 billion.

In purchasing Signify, CVS edged out several other possible contenders, including Amazon, UnitedHealth and Option Care Health. The Wall Street Journal first reported last month that CVS was a suitor for Signify. One of the major draws for CVS was Signify’s capabilities in value-based care, according to CVS President and CEO Karen S. Lynch.

“Signify Health will play a critical role in advancing our healthcare services strategy and gives us a platform to accelerate our growth in value-based care,” Lynch said in a statement Monday. “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 healthcare experience. In addition, this combination will strengthen our ability to expand and develop new product offerings in a multi-payer approach.”

Signify’s network of clinicians — physicians, nurse practitioners and physician assistants — use home-based visits to identify a patient’s clinical and social needs and then connect them to appropriate follow-up care and community-based resources, CVS noted. This year, Signify’s clinicians expect to connect with nearly 2.5 million unique members in the home, both in-person and virtually.

Signify has further expanded its focus on value-based care and population health since it purchased Caravan Health in 2022, according to CVS. Caravan is already a partner to 170 providers participating in accountable care organizations serving Medicare beneficiaries with a focus on improving the health of underserved communities. As part of CVS, Signify will continue to advance its extensive primary care enablement capabilities, including turnkey analytics and practice improvement solutions to help providers transition to value-based reimbursement.

“Signify Health’s mission is to build trusted relationships to make people healthier by using actionable intelligence to understand what’s really impacting outcomes and cost today,” Kyle Armbrester, CEO of Signify, said in a statement. “As we carefully considered our long-term strategic options, we determined that CVS Health is the ideal partner, given its focus on expanding access to health services and helping consumers navigate to the best sites of care. We are both building an integrated experience that supports a more proactive, preventive and holistic approach to patient care, and I look forward to executing on our shared vision for the future of care delivery.”

Armbrester will continue to lead Signify as part of CVS, the pharmacy company said Monday.