VillageMD, majority owned by Walgreens Boots (NASDAQ:wba) is asked to evaluate a merger deal with CityMD’s parent Warburg Pincus-backed Summit Health.
The value of the acquisition of Summit Health is expected to be A combined company worth $5 billion to $10 billion, a . According to Bloomberg report In which acquaintances were cited. A deal could be put together in the coming weeks, although talks could break down.
The talks come after Walgreens (wba) announced a little over a year ago that it has made an additional $5.2B investment in VillageMD doubling the ownership stake of the company In the primary care service provider. The investment increased WBA’s ownership stake in VillageMD from 30% to 63%.
Summit Health and CityMD Merged in August 2019.
The potential deal follows flurry of activity in the health/primary care sector in recent months, including Amazon (AMZN, $3.9 billion announced the purchase of One Medical ,one meter) in July and CVS Health (CVS) Acquisition of Signify Health (SGFY, About $8 billion. for at the beginning of last month.