Walgreens-backed VillageMD exploring deal with Summit Health - report
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.