CVS is buying home-healthcare company Signify Health for $8 billion

Signify Health works with 10,000 doctors across the US, and it enables house calls to patients

Drugstore giant CVS plans to buy Texas-based home-healthcare company Signify Health in a deal worth $8 billion. The move highlights the fierce competition among technology and healthcare giants to enter medical services. Signify Health works with 10,000 doctors across the US, and it enables house calls to patients. Both UnitedHealthcare and Amazon were circling Signify Health. Amazon confirmed it would buy the primary care startup One Medical in July.

CVS, which is headquartered in Rhode Island, has told investors that it wants to push further into healthcare for customers. The CEO Karen Lynch told analysts that she expects to improve the company's health services in primary care, home health, and provider enablement. CVS expects the deal to close in the first half of 2023 and confirms that Signify Health's CEO Kyle Armbrester will continue to lead the company under the CVS Health banner. The company went public in February 2021 at $24 per share, and by the end of 2021; its stock price fell to about $14.