Amazon.com Inc (NASDAQ:AMZN), CVS Health Corp, Option Care Health Inc, and UnitedHealth Group Inc are all understood to be bidding for Signify Health Inc, according to weekend news reports cited by Reuters.
UnitedHealth has submitted the highest bid in excess of $30 a share, while Amazon's offer is close behind, Reuters said. Signify will hold a board meeting on Monday to discuss the bids, and final bids are expected on September 6, 2022, it added.
Signify has a market cap of around $4.97 billion based on its stock closing price of $21.20 on Friday. New York-based private-equity firm New Mountain Capital is an investor in Signify, first backing it in 2017
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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.
In an exclusive, The Wall Street Journal reported that Amazon was bidding for Signify and that it is up for sale in an auction that could value it at well over $8 billion.
The newspaper noted that a deal for Signify would mark Amazon’s latest foray into the healthcare sector, and the second time in recent months it faced off against CVS.
Earlier this month, the Wall Street Journal reported that CVS was seeking to buy Signify as it looked to expand in-home health services.
In July, Amazon agreed to pay $3.9 billion for 1Life Healthcare Inc, which operates a primary-care practice under the name One Medical.
Contact the author at jon.hopkins@proactiveinvestors.com