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Signify Health Inc.
SGFY 6.76%
is working with bankers to explore strategic alternatives including a sale, according to people familiar with the matter, roughly 18 months after the healthcare-services company’s initial public offering of stock.
Signify Health, which had a market value of more than $4 billion on Tuesday afternoon, supplies technology that helps health plans and providers with in-home care. It could attract interest from private-equity firms as well as managed-care providers, the people said.
The process is at an early stage, they said. A deal is far from guaranteed, especially given that strain in the financing markets has led to a number of leveraged buyouts being shelved in recent months.
Signify went public in February 2021, raising more than $500 million for the company. Its stock has fallen more than 25% since then, and in July, the company said it plans to wind down one of its units after changes to a government payment model and focus on more-profitable businesses.
Shares in the company rose 6.8% to $18.31 on Tuesday.
New York-based private-equity firm New Mountain Capital is an investor in Signify after first backing it in 2017.
Signify is set to report its second-quarter earnings later this week.
Write to Laura Cooper at laura.cooper@wsj.com and Cara Lombardo at cara.lombardo@wsj.com
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Appeared in the August 3, 2022, print edition as ‘Healthcare Provider Signify Is Exploring Strategic Options.’
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