August 05, 2022
👋 Hi, it's Sarah. Erin is traveling to my home away from home to explore the Tetons through next Tuesday. I'll be in the concrete jungle. As always, write to me with any tips, deal news or feedback!
1 big thing: Here's who's advising Signify Health
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.