Inside the bidding war for Signify Health: 5 new details

UnitedHealth Group, Amazon and Option Care Health all made bids for home health company Signify Health, according to an SEC filing

There were five parties involved in the final bidding process, but CVS Health came out on top with the highest bid of $24 per share. 

Five details:

  1. CVS ended up revising its initial bid of $24 per share and requested to acquire 100 percent of Signify Health's outstanding equity for $30 per share.

  2. Signify tried to get CVS to increase the price per share to $35. 

  3. Signify also asked CVS to agree to a termination fee of 3 percent of the equity value, an antitrust termination fee of 7 percent of the equity value and a request to amend their existing commercial agreement upon the termination of the merger agreement because of failure to obtain regulatory approval. That meant CVS Health would agree to use Signify as CVS Health's exclusive provider of in-home evaluations for a specified period if the deal failed to get approval.

  4. CVS Health rejected the new proposal and said its offer was final.
     
  5. On Sept. 5, both companies entered into a definitive agreement, with CVS set to acquire Signify Health for $30.50 a share. 

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars

>