Signify Health shares soar on reports of Amazon, UnitedHealth bids

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Shares of Signify Health opened at almost $30 a share Monday, after news reports Sunday that Amazon and UnitedHealth were among the bidders for the company.

Also bidding for Signify, an in-home health care evaluations and technology company, are CVS Health and Option Care Health, Bloomberg reported Sunday. UnitedHealth has submitted the top bid, of more than $30 a share, with Amazon’s offer close behind, unidentified sources told Bloomberg.

Shares of Signify were trading at around $29 a share premarket and opened at $29.71 Monday, up almost 40% from Friday’s close of $21.20 a share.

Last month, Amazon’s lofty ambitions for its role in the U.S. health industry took a step forward with the announcement of its planned $3.9 billion acquisition of One Medical, a publicly traded, membership-based primary-care practice offering virtual and brick-and-mortar services to commercially insured patients. 

According to Bloomberg, Signify’s board is scheduled to meet Monday to discuss the bids, and final bids are due Sept. 6.

Earlier this month, Signify detailed plans to lay off 500 workers, beginning Oct. 1. The company said the layoffs were connected to its decision to exit its episodes-of-care segment, in which it partnered with payers to participate in value-based care programs. 

Lynn Shepherd, Signify’s vice president of communications, said the company does not comment on rumors and speculation. Amazon and CVS Health also said they would not comment on speculation.

This is a developing story. Check back for updates.


Source: modernhealthcare.com

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