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CVS
is close to clinching the deal which could be announced as early
as next week, after beating out other potential buyers including
Amazon.com Inc and UnitedHealth Group Inc, who had also been
circling Signify for a deal, the source said.
The source, who requested anonymity as the discussions were
confidential, cautioned there is still no guarantee that CVS
will reach a deal.
The Wall Street Journal reported the talks between CVS and
Signify earlier on Friday.
CVS, UnitedHealth, Signify Health and Amazon.com declined to
comment.
Signify has been exploring strategic alternatives since earlier
this summer, sources familiar with the matter told Reuters
previously.
Signify, which went public in early 2021, has struggled since
its stock market launch and the company's shares were trading
below their IPO price before talks of the sale process were
first reported in August.
New York-based private equity firm New Mountain Capital is a
significant investor in Signify, having bought a stake in 2017.
Signify offers technology and analytics to help with at-home
care for patients. Signify has said its services can help
identify potential health risks and gaps in care.
For CVS, a deal with Signify would make strategic sense as it
would help potentially improve care and reduce costs by ensuring
patients receive the help they need after medical procedures to
prevent new hospitalizations, among other things.
(Reporting by Caroline Humer in New YorkAdditional reporting by
Leroy Leo and Praveen Paramasivam in BengaluruWriting by Anirban
SenEditing by Shounak Dasgupta and Matthew Lewis)
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