Warburg Pincus has exited its investment in primary, specialty and urgent care provider Summit Health-CityMD through a $8.9 billion sale to VillageMD with support from Walgreens Boots Alliance (WBA), and an affiliate of Evernorth, a subsidiary of Cigna Corporation.
Warburg Pincus has exited its investment in primary, specialty and urgent care provider Summit Health-CityMD through a $8.9 billion sale to VillageMD with support from Walgreens Boots Alliance (WBA), and an affiliate of Evernorth, a subsidiary of Cigna Corporation.
Summit Health has been backed by Warburg Pincus since 2017, when it took a stake in CityMD, a large chain of New York City urgent-care centres. Warburg Pincus has helped the company complete multiple transformative acquisitions, including the 2019 merger of CityMD and multi-specialty medical-practice group, Summit Medical Group.
WBA will invest $3.5 billion through an even mix of debt and equity to support the acquisition of Summit Health-CityMD, which drives meaningful synergies and accelerates WBA’s path to profitability for its US Healthcare segment. WBA will remain the largest and consolidating shareholder of VillageMD with approximately 53% ownership. The company expects to maintain an investment grade rating.
Together, VillageMD and Summit Health-CityMD will create a multi-payor platform to deliver quality, affordable care for all patients. The combined company leverages VillageMD’s deep expertise in value-based care to support and accelerate the transition to more risk-based care and Summit Health-CityMD’s longstanding and deep expertise delivering multispecialty, connected care. It also enhances WBA’s robust portfolio of leading, integrated healthcare offerings across the care continuum.
