CVS-Signify Health agreement: DOJ asks for more information
The Justice Department wants more information about CVS Health’s proposed $8 billion acquisition of Signify Health before allowing it to proceed, the companies revealed Thursday.
Last month, CVS announced plans to buy Signify Health, the nation’s largest provider of home health risk assessment services. The deal will represent parent Aetna’s first foray into the lucrative home health market, an area where Medicare Advantage carriers UnitedHealthcare and Humana already have a foothold. CVS has also shown that it is on the market for a primary care provider.
The Justice Department’s request extends by 30 days the amount of time CVS Health and Signify Health must wait to finalize the agreement, although the government may waive that request. CVS is still expected to close trading in the first half of next year, according to documents filed with the Securities and Exchange Commission on Thursday. Neither company immediately responded to interview requests.
Amazon, UnitedHealth Group and Option Care Health also sought to acquire Signify Health, which boosted their bid to more than double its value in three months of negotiations.
The federal government has closely scrutinized several healthcare mergers. The Federal Trade Commission requested more information about UnitedHealth Group’s proposed $5.4 billion acquisition of home health care provider LHC Group in June, and last month asked for it. provides more information on Amazon’s proposed $3.9 billion purchase of primary care provider One Medical.