CVS pressing pause on M&A after Oak Street, Signify buys

CVS Health said it will not pursue any major acquisitions in the near future following its recent purchases of Dallas-based Signify Health and Chicago-based Oak Street Health.

"I think over time we'll look at other assets, but right now we need to focus on execution of the assets that we just acquired," President and CEO Karen Lynch told investors during the company's first-quarter earnings call May 3. "As you think longer term around the corner, there might be additional opportunities in the home or health services and tech."

The company closed on its acquisition of in-home care company Signify Health for $7.8 billion in March, adding more than 10,000 clinicians to its network. Its $10.6 billion purchase of Medicare-focused primary care provider Oak Street Health closed May 2, adding more than 170 medical centers across 21 states to the company's network.

CVS reported total revenues of $85.3 billion in the first quarter of 2023, an 11 percent increase year over year. Net income was $2.1 billion, down from $2.4 billion year over year.

The company also lowered its year-end guidance to a range of $8.50 to $8.70 in earnings per share.

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