Before US markets opened, Signify Health Inc. saw a sharp increase in trading as UnitedHealth Group Inc.(NYSE: UNH), Amazon.com Inc.(NASDAQ: AMZN), CVS Health Corp.(NYSE: CVS), and Option Care Health Inc.(NASDAQ: OPCH) were said to be in a bidding war to purchase the provider of home-health technologies and services.
According to insiders on the developments who prefer to remain anonymous, UnitedHealth has made the highest offer exceeding $30 per share, with Amazon following closely behind. Signify will now review the offers at its board meeting on Monday.
After closing at $21.20 on Friday, shares of Signify increased 41% to $29.81 as of 6:51 a.m. in New York. Since the revelations in the Wall Street Journal confirmed that CVS was considering an offer for the company, the stock has since risen by 6.7%. Previously, the newspaper had also listed Amazon among the bidders. Final bids are anticipated on September 6, but a deal can be reached sooner if any parties decide to forego the sales process, according to the individuals.
Multiple Buyers
A variety of buyers are encircling Signify. Amazon is a Seattle-based e-commerce titan, UnitedHealth is a Minneapolis-based healthcare giant that covers almost 46 million Americans, CVS is a retailer and insurer based in Rhode Island, and Option Care is a home health care company based in Illinois that is partially owned by Walgreens.
Although hurdles still exist, UnitedHealth and Amazon have so far offered to buy Signify for the highest price. After Amazon just decided to buy primary-care clinic startup One Medical, worries about rivalry in technology and healthcare are growing. US regulators frequently take a close look at Amazon acquisitions.
Meanwhile, UnitedHealth is battling in court to go through with its intended acquisition of Change Healthcare Inc. after the Justice Department filed a lawsuit to halt the transaction on the grounds that it would give the business access to private information on competing health insurers.
Signify intends to assist clients — payers including health plans, government programs, and employers — transition to value-based payment systems through its software and services. According to the company’s website, the private equity group New Mountain Capital founded it in 2017. By treating patients in less expensive environments and tying provider remuneration to patient outcomes, companies like Signify want to enhance treatment and minimize costs.
Featured Image : Megapixl © Rvlsoft
Author Jowi Kwasu 
