Signify Health (NYSE:SGFY)
In pre-market trading on Monday, the shares of Signify Health (NYSE:SGFY) increased by 38% in response to news that the home health service provider intends to hold a board meeting to assess several different takeover offers.
Amazon (NASDAQ:AMZN), a significant player in the field of technology, UnitedHealth (UNH), CVS Health (CVS), and Option Care Health Inc. (OPCH) are among the companies that have expressed interest in placing bids.
According to a story published by Bloomberg on Sunday evening, a winner might be declared as soon as this week. The article also stated that UNH has put the highest bid of more than $30 per share, slightly higher than AMZN’s offer.
The Wall Street Journal has previously indicated that an auction for sale might place a value of more than $8 billion on the corporation in Dallas, Texas.
Credit Suisse made the following observation in response to the news: “Amazon is undoubtedly the most deep-pocketed of conceivable acquired in the healthcare market.” The analysts, led by A.J. Rice, warned that the bid made by the technology giant might drive up the price of the acquisition even further and/or make the competition much more fierce.
The offer that UNH has made for Signify Health (NYSE:SGFY) comes at the same time that the company is working on completing two other deals: the acquisition of Change Healthcare (CHNG), which is currently being litigated in the courts, and the recent offer for home-healthcare provider LHC Group (LHCG).
The analysts point out that UNH engages in a competitive activity with SGFY in one of the OptumCare business segments. Credit Suisse says that Optum constituted 11% of Signify Health (NYSE:SGFY) sales in 2021 and that a potential acquisition could bring regulatory scrutiny if it were to occur. Even though the market share of each firm is now unknown.
In response to CVS’s offer, Rice and the rest of the team contend that the suggested valuation of $7 billion to $8 billion for Signify Health (NYSE:SGFY)” would seem to be at the high end; of the company’s deployable capital.”
The current price of Signify Health (NYSE:SGFY) shares is around 15% lower than the amount they were trading at one year ago. This comes when there is intense competition to acquire the company.
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Author Shariq Khan 
