Amazon is interested in health technology company Signify Health, which is up for sale. This is what the Wall Street Journal reports, based on sources.
According to the business newspaper, Amazon is interested in bidding in the Signify auction, which is due to take place soon. Signify is currently exploring “strategic alternatives” and a sale via auction is one of the options. It is expected that Signify could cost 7.9 billion euros ($8 billion) in an auction.
One of the bidders is CVS Health, which has already made an offer. Should Amazon’s potential bid exceed other bids, insiders say a quicker deal could also take place. The deadline for the bidding process is September 5.
Healthcare payment programs
Signify Health has a healthcare platform. The platform combines analytics, technology and a network of healthcare institutions to deliver payment programs. The company aims to optimize healthcare payment so that customers become and stay healthier.
The company offers financial incentives around healthcare and uses technology to develop health plans for health service providers. The plans allow them to better manage and assess risk and thus achieve better outcomes for their clients, coordinate healthcare and save costs. Ultimately, the solutions should achieve that individual patients are better treated and also more often able to undergo their treatment and healing at home.
Further expansion of health activities
This is not the first time Amazon has bought a healthcare party. Last month it already acquired the company One Medical for over 3.8 billion euros ($3.9 billion). In 2018, the tech giant acquired the online pharmacy PillPack and in 2020 it introduced Amazon Pharmacy for delivering prescription drugs. In 2019, Amazon acquired Health Navigator, a healthcare software provider. This company is to support Amazon Care, an employee health service.
Other big tech companies also invested heavily in healthcare tech. For example, Oracle acquired Cerner (25 billion euros), and Microsoft acquired Nuance (18 billion euros).