Axios Pro: Health Tech Deals

August 05, 2022

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1 big thing: Here's who's advising Signify Health

Illustration: Eniola Odetunde/Axios

Goldman Sachs and Deutsche Bank are engaged by Dallas-based Signify Health for financial advice on its strategic alternatives process, sources tell Sarah.

Driving the news: About 18 months after New Mountain Capital took the health tech company public, the Wall Street Journal wrote on Tuesday that Signify was "working with bankers" to explore options including a sale.

  • Signify, a technology-driven value-based care enabler, could draw interest from both private equity and managed care providers, the report said.

Catch up fast: Signify raised $564 million in its February 2021 IPO.

  • Almost a year to the date after its public market debut, Signify struck a $250 million deal to buy Caravan Health, which brings together accountable care organizations in an effort to take risks and curb Medicare spending.
  • Last month, Signify unveiled plans to wind down its Episodes division and leave a bundled payment program, saying it planned to focus on its profitable and growing home and community services division, plus Caravan.

By the numbers: Signify shares popped on the news, pushing its market cap to about $4.5 billion, but are down slightly today.

  • That's down from a market capitalization of $7.12 billion when it debuted on the public markets last year.
  • Shares are up on the year, but prior to the report, had lost 25%-plus since its IPO.

Signify and Goldman declined to comment, while a DB representative did not return a request for comment.

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