CVS Looks To Acquire Oak Street for $10.5B — Retail Bum

CVS Health has its eyes on Oak Street Health as it looks to expand its primary care services business.

The company is looking to acquire the primary care provider for roughly $10.5 billion, including its debt.

The news follows a Bloomberg report which revealed that CVS was exploring a $10 billion deal to buy the primary care company. Oak Street Health today operates a network of value-based primary care centers for adults on Medicare and is the only primary care provider to carry the AARP name.

According to a Wall Street Journal report, the companies are discussing a price of about $39 a share and that CVS, which reports earnings on February 8, 2023, could announce the deal as soon as this week.

CVS began expanding beyond retail pharmacies in 2018, starting with the acquisition of health insurance company Aetna for $69 billion.

More recently, in September 2022, CVS acquired home health company Signify Health for approximately $8 billion, or $30.50 per share in cash. And then, in January 2023, CVS teamed up with a hybrid healthcare company called Carbon Health, which “combines expert care with proprietary technology for easy everyday health.”

Through CVS Health Ventures, CVS Health’s corporate venture arm, Carbon Health received $100 million in its Series D funding round.

Photo credit: CVS

Originally published at https://retailbum.com on February 8, 2023.