Dallas-based health platform Signify Health has been acquired by pharmacy and insurance giant CVS Health for $8 billion. The purchase has officially closed, and Signify Health CEO Kyle Armbrester stated that the acquisition will bring more resources and opportunities for expansion. The deal will also enable Signify Health to serve patients, providers, and payers more effectively while continuing to operate independently and payor-agnostic.
Formed in 2017 by a private equity-backed merger of tech-based healthcare services CenseoHealth and Advance Health, Signify Health raised $564 million in its initial public offering in 2021. Its market capitalization surpassed $7 billion at the time. The company offers value-based care, leveraging analytics, technology, and provider networks to improve outcomes and reduce healthcare expenses while also shifting care into homes.
According to Armbrester, one of the significant changes resulting from the acquisition is the access to CVS’s extensive network of pharmacy services. He asserts that Signify Health could benefit from CVS expertise in medication adherence, cost, and poor drug interaction issues. Bringing this knowledge to Signify’s national provider network, he believes, presents an opportunity to improve outcomes.
In addition, Armbrester highlights access to billions in capital as another advantage of the deal. With increased scaling capabilities, Signify Health will continue to relieve analytic and administrative burdens hospitals face, expand partnerships, acquisitions, and drive innovation in healthcare trends.
Armbrester believes Signify Health is an attractive target because the healthcare industry is undergoing significant changes as more care shifts into homes. The increased capabilities and decreased device sizes drive this shift. Additionally, more connectivity enables access to more health data than ever, driving a need for a company that can use this data to align payers and providers via value-based care.
While recent acquisitions by major players in the industry have resulted in an opportunity to exit, Armbrester aims to continue leading Signify Health into the future. The company will remain headquartered in Dallas, with Armbrester seeking to diversify and increase employment.
For Armbrester, this mission represents more than shareholder value and fiscal measures. A personal experience of mismanaged end-of-life care has motivated him to make a positive impact in the world through healthcare. Signify Health is a great example of his efforts toward this vision.