Amazon among bidders for Signify Health
A deal would mark Amazon’s latest foray into the healthcare sector
Amazon.com Inc. is among the bidders for healthcare company Signify Health Inc., joining other heavy hitters vying in an auction for the home-health-services provider, according to people familiar with the matter.
Signify is for sale in an auction that could value it at more than $8 billion, the people said. Bids are due around Labor Day, according to the people, but it is always possible an eager bidder could strike a deal before then.
CVS Health Corp. is also among the suitors, The Wall Street Journal previously reported, as the drugstore and insurance giant looks to expand in home-health services. UnitedHealth Group Inc. and another corporate buyer are also circling the company, according to the people.
There is no guarantee any of them will reach a deal for Signify, which has been exploring strategic alternatives. The healthcare company has a market value of roughly $5 billion, boosted since the Journal first reported on the possibility of a deal early this month.
Signify uses analytics and technology to help employers, health plans, physician groups and health systems with in-home care. It offers in-home health evaluations for Medicare Advantage and other government-run managed care plans.
A deal would mark Amazon’s latest foray into the healthcare sector, and the second time in recent months it faced off against CVS.
The online-commerce and media and technology giant in July agreed to pay $3.9 billion for 1Life Healthcare Inc., which operates a primary-care practice under the name One Medical. The deal marks the first major acquisition announced during the tenure of Chief Executive Andy Jassy, for whom expansion into healthcare is a top priority.
CVS also had eyed the One Medical parent, according to people familiar with the matter.
New York-based private-equity firm New Mountain Capital is an investor in Signify, after first backing it in 2017.
