Walgreens' VillageMD and Cigna's Evernorth Acquire Summit Health-CityMD

The wheeling and dealing in U.S. healthcare providers continued today with the announcement that VillageMD was buying a majority stake in Summit Health-CityMD, a company with primary, specialty and urgent care providers.

As part of the same deal, Evernorth, the health services subsidiary of Cigna, is buying a minority stake in Summit Health-CityMD.

The total value of the transaction is $8.9 billion, according to press release put out by VillageMD earlier deal.

This deal comes after Amazon announced in July that it was acquiring One Medical, a primary care company, for nearly $4 billion. In September, CVS Health announced it was acquiring Signify Health, a health-risk assessment and value-based care company, for $8 billion.

Walgreens Boots Alliance invested $5.2 billion in VillageMD last year, according to a report in Forbes last year, and today's press release said Walgreens will invest $3.5 billion through an mix of debt and equity to buy Summit Health-CityMD.

Summit Health-CityMD is itself the creation ofa relatively recent deal. In 2019, Summit Health, a high-profile primary and specialty care organization in New Jersey with a 100-year history, merged with CityMD, an urgent care provider in the New York metro area.

The press release about the VillageMD-Summit Health-CityMD deal says that together the two companies will have 680 provider locations in 26 markets.