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Walgreens-backed VillageMD to Buy Warburg Pincus-backed Summit Health for $8.9B

Walgreens-backed VillageMD to Buy Warburg Pincus-backed Summit Health for $8.9B

Walgreens Boots Alliance-backed VillageMD, a primary care provider, is buying private equity firm Warburg Pincus-backed urgent care provider Summit Health-CityMD for $8.9 billion.

Walgreens, which will hold a 53% stake in the combined healthcare provider, and Cigna subsidiary Evernorth are financing the purchase with $3.5 billion in equity and debt. The transaction is expected to close in the first quarter of 2023.

WBA is raising its US Healthcare fiscal year 2025 sales goal to $14.5 billion to $16 billion, from $11 billion to $12 billion to account for the transaction.

The deal is the latest by big consumer-focused companies aiming to make a formidable presence in medical care as it follows the $4 billion acquisition of primary-care operator 1Life Healthcare Inc. by Amazon.com in July and the $8 billion buyout of Signify Healthcare Inc. by CVS Health Corp in September.

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About Joe Palmisano

Joe Palmisano is Editorial Director for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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