(NEW YORK) -- CVS Health announced on Monday it has reached a deal to acquire home healthcare provider Signify Health for approximately $8 billion.
Per the terms of the agreement, CVS will pay $30.50 per share in cash for Signify.
"Signify Health will play a critical role in advancing our health care services strategy and gives us a platform to accelerate our growth in value-based care," CVS Health President and CEO Karen S. Lynch said in a statement. "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. In addition, this combination will strengthen our ability to expand and develop new product offerings in a multi-payor approach."
The transaction, which was approved by both companies' board of directors, is expected to close in the first half of 2023. It is still subject to "approval by a majority of Signify Health's stockholders, receipt of regulatory approval and satisfaction of other customary closing conditions," CVS said.
Once the deal is finalized, CVS said Signify Health CEO Kyle Armbrester will stay on to lead Signify as part of CVS Health.
"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," Armbrester 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."