DOJ is asking for additional information in the CVS and Signify merger
CVS Health says it anticipates the transaction closing in the first half of 2023.
Photo: Mario Tama/Getty Images
The Department of Justice is looking for more information on the CVS Health and Signify Health merger, according to documents filed October 20 with the Securities and Exchange Commission.
On October 19, both CVS and Signify received a request for additional information from the DOJ in connection with the department's review of the transaction.
CVS Health and Signify Health have been working cooperatively with the DOJ and will continue to do so, the company said in the SEC filing.
CVS Health anticipates that the transaction will close in the first half of 2023.
WHY THIS MATTERS
On September 19, CVS Health filed its pre-merger notification and report with the DOJ. The merger agreement to acquire Signify Health was scheduled to expire on October 19 unless extended by a request for additional information or terminated earlier.
CVS Health announced in September that it was acquiring Signify Health, reportedly beating out contenders Amazon, UnitedHealth Group and others in bidding for the company.
The $8 billion deal gives CVS a home health platform, adding to its provider offerings. CVS, which acquired Aetna in 2018, already offers care through pharmacy Minute Clinics and health screenings.
Home health is projected to grow due to an aging population and models for home care that expanded during the pandemic.
Walgreens Boots Alliance expanded into the market through the purchase of CareCentrix, a platform that coordinates care in the home for plans, patients and providers.
THE LARGER TREND
The DOJ has been closely watching mergers for any antitrust concerns.
It sued to block the merger between UnitedHealth Group and Change, and lost.
Even though UnitedHealth and Change have completed their merger, the DOJ has 60 days from the September 19 court opinion to file an appeal.
Twitter: @SusanJMorse
Email the writer: SMorse@himss.org
