VillageMD to acquire urgent care provider Summit Health-CityMD for $9bn
American healthcare company VillageMD has signed an agreement to acquire Summit Health-CityMD, a primary, specialty, and urgent care provider, in a transaction valued at around $8.9 billion, with an aim to advance healthcare in the US.
The transaction is expected to deliver a complete patient experience for the optimal individual and community outcomes.
VillageMD will fund the acquisition leveraging investments from Walgreens Boots Alliance and an affiliate of Evernorth, a subsidiary of managed healthcare and insurance company Cigna Corporation.
The combined entity will have more than 680 provider locations in 26 markets and augment Walgreens Boots Alliance’s portfolio of integrated healthcare offerings across the healthcare space.
Tim Barry — VillageMD CEO and Chair said: “Summit Health-CityMD has been a leader in delivering coordinated, multi-specialty care for decades.
“We are honored to work side-by-side with their 13,000 strong workforce who are passionately committed to delivering the best outcomes for millions of patients.”
VillageMD to acquire primary, specialty and urgent care provider Summit Health-CityMD
Walgreens Boots Alliance with a $3.5 billion investment will own approximately 53% stake in VillageMD.
Jeff Alter — Summit Health-CityMD CEO said: “Adding our expertise and geographic coverage to VillageMD’s proven value-based primary care approach will enhance the lives of so many patients and physicians across the country, helping to lower healthcare costs and improve the health of our communities.”
Walgreens Boots Alliance has set its US Healthcare fiscal year 2025 sales goal following this transaction to $14.5 billion and $16 billion, compared to $11 billion and $12 billion earlier.
Expected to close in Q1 2023, the transaction is subject to meeting customary closing conditions.
Summit Health-CityMD was formed by the merger of Summit Medical Group and CityMD in 2019.
In 2017, Warburg Pincus, a chain of New York City urgent-care centers, purchased CityMD and took a majority stake in Summit Health after the 2019 acquisition.