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

The $8.9 billion deal comes on the heels of multibillion dollar healthcare acquisitions this year by Amazon and CVS Health. Will the spree continue?

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.