Amazon's Deep Pocketed Bid For Signify Will Drive Up Acquisition Prices, Says This Analyst

Amazon.com, Inc AMZN has bid for healthcare company Signify Health, Inc SGFY in an auction that could value it at $8 billion.
A deal would mark Amazon's latest foray into the healthcare sector and its second time facing off against CVS Health Corp CVS.
Signify's other prospective suitors included CVS and UnitedHealth Group Inc UNH.
In July, Amazon agreed to snap 1Life Healthcare, Inc ONEM for $3.9 billion.
1Life operates a primary-care practice under the name One Medical.
CVS also had eyed the One Medical parent.
Credit Suisse analyst A.J. Rice said, on the Amazon side, the possible bid comes on the heels of the ONEM announcement.
Amazon's bid for SGFY could indicate a shift in strategy away from 'Build' and more towards 'Buy,' he said.
Amazon is arguably the deepest pocketed of possible acquirers in the healthcare space, and their involvement could push acquisition prices higher and create a more competitive bidding environment, he noted.
Given the general focus on 'Big Tech' amongst antitrust regulators, this transaction could also be scrutinized, even without market overlap in the traditional sense.
He reiterated an Outperform rating on Amazon and a price target of $170.
Price Action: AMZN shares traded lower by 3.52% at $133.35 on the last check Monday.
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