Home-health company Signify Health Inc. (NYSE: SGFY) is being pursued by e-commerce giant Amazon.com, Inc. (NASDAQ: AMZN), UnitedHealth Group Incorporated (NYSE: UNH) and a couple of other firms, Bloomberg reported, citing people with knowledge of the matter.
What Happened: UnitedHealth has tabled the highest bid of over $30 per share for Signify, and Amazon’s offer price is the next highest, the report said. CVS Health Corporation (NYSE: CVS) and Option Care Health (NASDAQ: OPCH) are also in the fray, it added.
Signify’s board is meeting on Monday to discuss the bids, as per Bloomberg.
A Wall Street Journal report said in early August that CVS is considering a bid for Signify after the latter was rumored to be exploring strategic options.
Signify, founded in 2017, is a value-based care platform that uses advanced analytics and other technology to provide home-based health services.
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Why It’s Important: Interest in healthcare companies is on the rise, especially as big techs have come to appreciate the sector’s potential. Loup Funds’ Gene Munster sees U.S. healthcare as a $4 trillion opportunity.
Wellness is a big enough market to move the needle for both Apple, Inc. (NASDAQ: AAPL) and Amazon, he suggested.
Earlier this month, Amazon announced a $3.9 billion deal for 1Life Healthcare Inc. (NASDAQ: ONEM), which operates under the brand name One Medical and provides primary-care services in-person or virtually as well as telemedicine services.
Cathie Wood’s Ark Investment Management has made a big bet on Signify. Ark, through its flagship ARK Innovation ETF (NYSE: ARKK) and ARK Genomic Revolution ETF (BATS: ARKG), holds 17.3 million shares in Signify.
Price Action: Signify shares closed Friday’s session at $21.20, down 2.44%, according to Benzinga Pro data.
