UnitedHealth, Amazon are among bidders for Signify

(Bloomberg) — Signify Health Inc . jumped the most since its shares began trading last year as UnitedHealth Group Inc., Amazon.com Inc., CVS Health Corp. and Option Care Health Inc. competed to acquire the home health technology and services provider, according to people familiar with the matter.

Most Read by Bloomberg

UnitedHealth submitted the highest bid of more than $30 a share, while Amazon’s offer is well behind, the people said, asking not to be identified as the discussions are private. Signify is holding a board meeting on Monday to discuss the offers, the people said.

Shares of Signify rose as much as 41% to $29.88 in New York, the highest daily since the company began trading in February 2021. The stock had risen 6.7% through Friday, after Wall The Street Journal reported earlier this month that CVS was considering a bid for the company. The newspaper earlier also reported that Amazon was among the bidders.

No plans have been finalized, bidders’ plans could change and Signify could choose to remain independent. Signify did not immediately respond to a request for comment sent Sunday. Representatives for CVS, Amazon and UnitedHealth declined to comment. Option Care did not immediately respond.

Final offers are expected on Sept. 6, but a deal could come sooner if either party moves ahead with the sales process, the people said.

Different buyers

It’s a diverse set of buyers that circle Signify. Amazon is an e-commerce behemoth based in Seattle. UnitedHealth is a Minneapolis-based health care group that insures nearly 46 million Americans. Rhode Island-based CVS is a retailer and insurer. and Option Care is an Illinois-based home health care provider partially owned by Walgreens.

UnitedHealth and Amazon have so far offered to pay the highest amount for Signify, but challenges remain.

Concerns about competition in technology and healthcare are intensifying after Amazon recently agreed to acquire primary care company One Medical. Amazon acquisitions tend to be viewed heavily by US regulators.

UnitedHealth, meanwhile, is fighting in court to go through with its proposed acquisition of Change Healthcare Inc. after the Justice Department sued to block the deal, saying it would give the company access to sensitive information about rival health insurers.

Through its software and services, Signify aims to help customers — payers such as health plans, government programs and employers — shift to value-based payment plans. It is backed by private equity firm New Mountain Capital, which formed the company in 2017, according to the company’s website.

Companies like Signify aim to improve care and reduce costs by treating patients in lower-cost settings and linking provider payments to patient outcomes.

Other small healthcare technology providers jumped on the news. Oak Street Health Inc. rose as much as 3.3%, Cano Health Inc. rose up to 17% and Caremax Inc. rose up to 4.4%.

(Adds stock trading in third and final paragraph)

Most Read by Bloomberg Businessweek

©2022 Bloomberg LP

Leave a Reply

Your email address will not be published.