Signify Health shares rise on reports of Amazon considering bid
Shares of Signify Health soared 32% on Monday after reports that Amazon is among the bidders for the home health service provider.
Amazon, CVS and UnitedHealth Group are competing to acquire Signify, The Wall Street Journal and Bloomberg reported Sunday, citing people familiar with the matter.
Signify is up for sale in an auction that could value it at more than $8 billion, the Journal reported. The company will hold a board meeting on Monday to discuss the offers, and final offers are expected around Labor Day, according to the Journal.
Signify, which provides technology to help with home care, has a market capitalization of around $6.56 billion.
UnitedHealth submitted the highest bid for Signify, above $30 per share, while Amazon’s offer is a close second, Bloomberg reported.
The New York Stock Exchange welcomes Signify Health (NYSE: SGFY), today, Thursday, February 11, 2021, to celebrate its IPO. To honor the occasion, Kyle Armbrester, CEO, joined by John Tuttle, NYSE Vice Chairman and Chief Commercial Officer, rings The Opening Bell®.
A deal would push Amazon further into healthcare. The retail giant announced last month that it would buy 1LifeHealthcare, the parent company of primary care clinic company One Medical, for $3.9 billion.
Amazon’s stock closed down 3.6% on Monday.
Representatives for Amazon and Signify Health declined to comment.
LOOK: Amazon to buy One Medical for about $3.9 billion