(RTTNews) - Signify Health, Inc. (SGFY), a healthcare platform focused on payment initiatives, said on Thursday that it has signed a deal to buy Caravan Health, a healthcare service provider, for an initial purchase price of around $250 million, in a combination of cash and Signify Health shares.
The deal also involves contingent additional payments of up to $50 million based on the future performance of Caravan.
The transaction, which is scheduled to close in the first quarter of 2022, is expected to add to Signify Health's 2022 revenue and adjusted EBITDA of the acquirer.
Together, the companies will be supporting approximately $10 billion in total medical spend under management.
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