CVS to buy Signify Health in deal pushing beyond retail

CVS Health reached a deal to buy home-health and technology services provider Signify Health for about $8 billion, as the drugstore chain continues to expand beyond its retail origins.

Through its software and services, Signify aims to help clients — payers like health plans, government programs and employers — shift to value-based payment plans. Signify's network has more than 10,000 clinicians in all 50 states in the US.

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"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," CVS Health Chief Executive Officer Karen S. Lynch said in the 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 healthcare experience."

The acquisition ranks among the biggest for CVS as it has broadened its healthcare footprint. Its largest was its purchase of insurer Aetna in a deal valued at $68 billion including debt. That transaction, completed in 2018, followed its 2007 acquisition of Caremark RX for about $27 billion.

CVS and Signify said they expect their transaction to close in the first half of 2023.