VillageMD, which is majority owned by Walgreens Boots Alliance Inc., is exploring a deal to merge with Warburg Pincus-backed Summit Health, Bloomberg reports, citing people familiar with the matter.
The acquisition by primary-care provider VillageMD of Summit, a health-care network and the parent of CityMD, would value the combined entity at between $5 billion to $10 billion, said the people, who asked to not be identified because the matter isn’t public.
An agreement could be reached in the coming weeks, though talks could still fall apart, the people added. Representatives for VillageMD, Walgreens and Warburg Pincus declined to comment, while Summit Health didn’t immediately respond to a request for comment.
The talks come as Walgreens rivals including CVS Health Corp. and Amazon.com Inc. push deeper into primary health care through major acquisitions. Walgreens agreed to more than double its stake last year in VillageMD to 63% from 30% by investing $5.2 billion in the company. Read more.
