Is CVS' Acquisition of Signify in Danger of Falling Through?
Earlier this month, CVS Health (NYSE: CVS) announced that it would acquire home health company Signify Health for $8 billion. CVS beat out big names, including Amazon and UnitedHealth Group, in its pursuit of Signify. The move would further expand CVS' reach by allowing it to provide care to patients in their homes, which can help manage chronic conditions.
But the deal isn't done just yet. And there's a possibility that it doesn't go through at all. Regulators will take a close look at the transaction, and it could face obstacles.
CVS runs pharmacies, is a pharmacy benefits manager, and has insurance plans under Aetna. At a market cap of $132 billion, it's one of the largest healthcare companies in the world. Over the trailing 12 months, its revenue is north of $300 billion, putting it neck and neck with UnitedHealth Group. By comparison, Signify's sales over the past four quarters totaled $843 million.
Source Fool.com
