
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.
