CVS Health has reached a deal to acquire home health care company Signify Health for about $8 billion, the companies announced Monday.

CVS said it will pay $30.50 per share in cash to Signify, an acquisition based on the company’s growing healthcare services. Signify provides technology and analytics to support home patient care.

Karen Lynch, president and CEO of CVS Health, said in a news release:

The deal comes at a time when competitors from Amazon to Walgreens are pushing further into the healthcare sector. In July, Amazon announced it would acquire primary care provider One Medical for about $3.9 billion.

Signify Health’s stock price surged nearly 45% last month, bringing its market cap to about $6.7 billion at $28.77 a share on Friday’s close, according to FactSet. The Wall Street Journal reported on Aug. 2 that Signify is exploring strategic alternatives, including a sale.

Shares of Signify, which went public in February 2021, surged in late August following reports that Amazon was one of the bidders.

Last month, CVS revealed plans to buy or own primary care companies by the end of the year.

The Signify deal follows other acquisitions and transitions into primary healthcare. CVS previously acquired insurance company His Aetna and pharmacy benefits manager Caremark, allowing customers to get vaccines and emergency care at MinuteClinic outposts in stores. More recently, we have introduced mental health therapies in some of our stores.

The companies expect the acquisition, which is subject to regulatory approval, to close in the first half of next year.

Private equity firm New Mountain Capital, which owns about 60% of Signify’s common stock, has agreed to support the transaction, the companies said.

CVS Health and Signify Health will host a conference call for analysts and investors on Tuesday at 8:30 am ET to discuss the transaction.