CVS Health announced on February 8 its acquisition of Oak Street Health in an all-cash transaction at $39 per share, representing an enterprise value of approximately $10.6 billion.
This marks CVS Health’s third largest deal in the last decade and fourth in the company’s history.
With the purchase of Oak Street Health, CVS Health will control more than 160 primary care centers that offer routine health screenings and diagnosis to adults.
Oak Street Health is a health care network of primary care centers for older adults on Medicare. The company leverages value-based care payment structures to improve outcomes and curb cost. Oak Street Health, which went public in 2020, operates 169 primary care clinics in 21 states with 159,000 at-risk patients receiving care.
Oak Street Health’s annual revenue for 2021 was approximately $1.4 billion, a 62.3% increase from 2020 when $883 million was reported. The company estimates 2022 revenue will reach upwards of $2.16 billion after reporting a record revenue of $545.7 million in Q3:22.
CVS Health is a leading health solutions company, providing several healthcare services across the U.S. such as walk-in clinics and retail pharmacies. It employs more than 300,000 people and has more than 40,000 physicians, pharmacists, nurses and nurse practitioners.
