Walgreens-backed VillageMD exploring deal with Summit Health (NASDAQ:WBA)

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VillageMD, which is majority owned by Walgreens Boots (NASDAQ:WBA) is said to be evaluating a deal to merge with Warburg Pincus-backed Summit Health, the parent of CityMD.

The acquisition of Summit Health is expected to value the combined company between $5 billion to $10 billion, according to a Bloomberg report which cited familiar people. A deal could come together in the coming weeks, although talks may fall apart.

The talks come after Walgreens (WBA) a little more than a year ago announced that it has made an additional investment of $5.2B in VillageMD doubling the company’s ownership stake in the primary care services provider. The investment increased WBA’s ownership stake in VillageMD to 63% from 30%.

Summit Health and CityMD merged in August 2019.

The potential deal follows a flurry of activity in the health/primary care space in recent months including Amazon’s (AMZN) $3.9 billion announced purchase of One Medical (ONEM) in July and CVS Health’s (CVS) deal to acquire Signify Health (SGFY) for about $8 billion early last month.

CVS Health (CVS) was also said to be in exclusive talks to purchase Cano Health (CANO), although CVS has reportedly walked away from the discussions.

Scott Heins/Getty Images News VillageMD, which is majority owned by Walgreens Boots (NASDAQ:WBA) is said to be evaluating a deal to merge with Warburg Pincus-backed Summit Health, the parent of CityMD. The acquisition of Summit Health is expected to value the combined company between $5 billion to $10 billion, according to a Bloomberg report which…

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