Summit Health Acquired by Walgreens-backed VillageMD in $9 Billion Deal


There have been credible reports that a merger between VillageMD and Summit Health, a healthcare organization controlled primarily by Walgreens Boots Alliance Inc., is imminent. The acquisition would be valued at about $9 billion, including debt. Reports say that health insurer Cigna Corp is anticipated to make an investment in the combined business.

In an effort to increase the availability of primary healthcare services in its shops, Walgreens, one of the biggest pharmacy chains in the United States, invested $5.2 billion in VillageMD last October. In 15 markets, Village MD has more than 200 sites.

According to Walgreens, it will contribute $3.5 billion to the acquisition, which is anticipated to complete in the first quarter of 2023, through a balanced mix of debt and equity. With a stake of around 53%, it will be the company’s largest stakeholder.

Walgreens increased its fiscal 2025 sales goal for the U.S. healthcare business to between $14.5 billion and $16 billion from $11 billion to $12 billion previously to account for the deal. The deal will also include investment from health insurer Cigna Corp’s healthcare unit Evernorth in exchange for a minority stake in the company.

Last year, the corporation committed $5.2 billion to increase its investment in VillageMD from 30% to 63%.