Amazon, UnitedHealth Said To Be Pursuing Cathie Wood-Backed Healthcare Firm

Home-health company Signify Health Inc. SGFY is being pursued by e-commerce giant Amazon.com, Inc. AMZN, UnitedHealth Group Incorporated UNH and a couple of other firms, Bloomberg reported, citing people with knowledge of the matter.

What Happened: UnitedHealth has tabled the highest bid of over $30 per share for Signify, and Amazon’s offer price is the next highest, the report said. CVS Health Corporation CVS and Option Care Health OPCH are also in the fray, it added.

Signify’s board is meeting on Monday to discuss the bids, as per Bloomberg.

A Wall Street Journal report said in early August that CVS is considering a bid for Signify after the latter was rumored to be exploring strategic options.

Signify, founded in 2017, is a value-based care platform that uses advanced analytics and other technology to provide home-based health services.

See also: Cathie Wood Makes Massive Buy In Nvidia Stock: Here's What You Should Know

Why It’s Important: Interest in healthcare companies is on the rise, especially as big techs have come to appreciate the sector's potential. Loup Funds’ Gene Munster sees U.S. healthcare as a $4 trillion opportunity.

Wellness is a big enough market to move the needle for both Apple, Inc. AAPL and Amazon, he suggested.

Earlier this month, Amazon announced a $3.9 billion deal for 1Life Healthcare Inc. ONEM, which operates under the brand name One Medical and provides primary-care services in-person or virtually as well as telemedicine services.

Cathie Wood’s Ark Investment Management has made a big bet on Signify. Ark, through its flagship ARK Innovation ETF ARKK and ARK Genomic Revolution ETF ARKG, holds 17.3 million shares in Signify.

Price Action: Signify shares closed Friday’s session at $21.20, down 2.44%, according to Benzinga Pro data.