According to a person familiar with the situation, CVS Health Corp is in advanced talks to buy home-healthcare company Signify Health Inc for around $8 billion.
CVS is close to completing the transaction, which could be announced as early as next week, after outbidding other potential buyers such as Amazon.com Inc and UnitedHealth Group Inc, who had been circling Signify for a deal, according to a source.
The source, who asked to remain anonymous because the discussions were private, cautioned that there is still no guarantee that CVS will reach an agreement.
The talks between CVS and Signify were first reported by the Wall Street Journal on Friday.
CVS, UnitedHealth, Signify Health, and Amazon.com did not respond to requests for comment.
Signify has been looking into strategic alternatives since earlier this summer, according to sources familiar with the situation.
Signify, which went public in early 2021, has struggled since its stock market debut, with shares trading below their IPO price before the sale process was first reported in August.
New Mountain Capital, a private equity firm based in New York, is a significant investor in Signify, having purchased a stake in 2017.
Signify provides technology and analytics to assist patients with at-home care. Signify claims that its services can assist in identifying potential health risks and gaps in care.
A partnership with Signify would make strategic sense for CVS because it would potentially improve care and reduce costs by ensuring patients receive the assistance they require following medical procedures to avoid new hospitalizations, among other things.
