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The deal between Signify Health and CVS Health is expected to close in early 2023. Signify Health is hiring tech roles for its Galway site.
Signify Health, a US-headquartered health-tech company that recently announced expansion plans for Galway, is set to be acquired by CVS Health.
CVS Health is a US corporation that encompasses several healthcare businesses. These include retail pharmacy chain, CVS Pharmacy and health insurance provider, Aetna.
The company said it had entered into a deal to acquire Signify Health for $30.50 per share in cash. This represents a total transaction value of around $8bn. The acquisition is expected to close early next year.
“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,” said CVS Health president and CEO, Karen S Lynch.
Signify Health’s platform uses analytics and technology to create value-based payment programmes that connect US patients and healthcare providers.
In March, Signify Health said it was recruiting staff in Galway following the opening of its tech-focused facility there. It plans to have 125 jobs filled by 2024.
The company said its first phase of recruitment would target people mainly for product management and software engineering roles. It will also be hiring scrum masters.
Lynch said CVS Health’s acquisition of the company would strengthen its “ability to expand and develop new product offerings in a multi-payer approach”.
Signify Health’s CEO, Kyle Armbrester, said that CVS Health would be an “ideal partner” for the business to help it achieve its long term strategic goals.
“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,” he said.
“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.”
Following the close of the transaction, Armbrester will continue to lead Signify Health as part of CVS Health. Signify Health’s extensive network of more than 50 health plan clients and their members will complement CVS Health’s offering of payer-agnostic services.
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