Drugstore giant CVS said on Monday that it is buying Dallas, Texas-based home healthcare company Signify Health in a deal worth $8 billion, a move that underscores fierce competition among technology and healthcare giants alike.
House calls to patients can be made with the help of Signify Health. In 2022, the company expects to make 2.5 million in-person and virtual patient home visits.
The Wall Street Journal reported last month that Amazon and UnitedHealthcare were looking at Signify Health. Amazon said in July that it would buy One Medical.
According to the Rhode Island-based company, it wants to push further into healthcare for customers.
Karen Lynch told analysts on the second quarter earnings call that she expected to improve the company's health services.
Lynch said that they are confident that they will take the next step on this journey by the end of the year.
According to a transcript from research provider Sentieo, the company was very active in evaluating a wide range of assets.
Kyle Armbrester, the CEO of Signify Health, will continue to lead the company under the auspices of theCVS Health banner. The stock price of Signify Health fell to about 14 by the end of the year.
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