Signify Health Shares Up Slightly Premarket on CVS Takeover

By Colin Kellaher

Shares of Signify Health Inc. edged higher in premarket trading Tuesday after the home-healthcare company agreed to be acquired by drugstore giant CVS Health Corp. in a deal worth about $8 billion.

CVS on Monday said it would pay $30.50 a share in cash for Signify, a 6% premium to Friday's closing price of $28.77 and roughly 74% above Signify's closing price of $17.15, before reports surfaced that the company was working with bankers to explore strategic alternatives, including a possible sale.

Private-equity firm New Mountain Capital, which formed Signify in 2017 and still owns a stake of about 60%, has agreed to vote in favor of the deal, slated to close in the first half of 2023.

Signify shares were recently up 1.3% to $29.14 in premarket trading, while CVS shares added 0.6% to $100.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

September 06, 2022 06:10 ET (10:10 GMT)

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