Scott Heins/Getty Images News
VillageMD, which is majority owned by Walgreens Boots (NASDAQ:WBA) is said to evaluating a deal to merge with Warburg Pincus-backed Summit Health, the parent of CityMD.
The acquisition of Summit Health is expected to value the combined company between $5 billion to $10 billion, according to a Bloomberg report, which cited people familiar. A deal could come together in the coming weeks, though talks may fall apart.
The talks come after Walgreens (WBA) a little more than a year ago announced that it has made an additional investment of $5.2B in VillageMD doubling the company’s ownership stake in the primary care services provider. The investment increased WBA’s ownership stake in VillageMD to 63% from 30%.
Summit Health and CityMD merged in August 2019.
The potential deal follows a flurry activity in the health/primary care space in recent months including Amazon’s (AMZN) $3.9 billion announced purchase of One Medical (ONEM) in July and CVS Health’s (CVS) deal to acquire Signify Health (SGFY) for about $8 billion early last month.
CVS Health (CVS) was also said to be in exclusive to talks to purchase Cano Health (CANO), though CVS has reportedly walked away from the discussions.
Image and article originally from seekingalpha.com. Read the original article here.