CVS Health is exploring an acquisition of Oak Street Health, which runs primary care centers for Medicare recipients, Bloomberg reports, citinvg people familiar with the matter.
A deal could be reached within weeks that would value Oak Street at more than $10 billion, including debt, said the people, who asked to not be identified because the matter isn’t public. Talks between the companies are ongoing and could end without an agreement, the people said.
Oak Street had nearly a $5.5 billion market cap at yesterday’s close, with shares way up this morning at the open. Major shareholders include General Atlantic 25.27% stake, and Newlight Partners (13.4%).
CVS has also announced participation in venture rounds for Monogram Health, Carbon Health and Array Behavioral Care. Read more.
