CVS Health Reportedly Eyeing Takeover of Oak Street Health for $10B
CVS Health is reportedly in talks to acquire Oak Street Health, which runs primary care centers for Medicare recipients, according to a Bloomberg report.
Citing people familiar with the matter, the report noted that discussions are ongoing, and a deal could be reached within weeks. But talks could cease without an agreement, the report noted.
The deal, for both Oak Street’s equity and debt, would likely surpass $10 billion if completed, and add to CVS’s recent $8bn acquisition of Signify Health and its eye-popping $69 billion Aetna deal in 2017.
The Oak Street news follows CVS’s announcement on Monday that it invested $100 million as part of Series D round in Carbon Health Inc., a San Francisco-based chain of urgent- and primary-care clinics.
CVS has been expanding its products beyond managing health and pharmacy benefits with acquisitions in recent years. The company had also expressed interest in expanding into the primary care space and was reportedly among the bidders to acquire primary care provider Cano Health before backing out.
Oak Street has more than 160 healthcare centers across 21 states. The company went public in August 2020 at $21 a share and was worth more than $15 billion at its peak in 2021.