CVS Health announced Monday that it is purchasing Signify Health, which creates and powers value-based payment programs, for approximately $8 billion in an effort to expand into at-home care offerings.

Through the deal, CVS will add Signify’s value-based provider network of more than 10,000 clinicians, which are slated to connect with 2.5 million unique members in the home this year. In 2021, Signify’s accountable care organizations (ACO) generated more than $138 million in gross savings. 

This is the second major deal for Signify this year, as the company acquired Caravan Health, an ACO builder, for $250 million in March. Signify stated that it expects Caravan to serve more than 700,000 patients next year. 

Signify CEO Kyle Armbrester stated that CVS shares the company’s mission to foster an “integrated experience” for patients that supports “a more proactive, preventive and holistic” approach to care.

“As we carefully considered our long-term strategic options, we determined that CVS Health is the ideal partner, given its focus on expanding access to health services and helping consumers navigate to the best sites of care,” Armbrester said in a statement.

Armbrester will stay on to lead Signify after the deal closes, which is expected to take place during the first half of 2023. The deal is subject to approval by a majority of Signify shareholders, customary regulatory approval and other closing conditions. 

The transaction was announced one month after CVS indicated during its most recent quarterly earnings call that it would pursue a primary care deal by the end of the year. This ambition was put into sharper focus in light of Amazon’s recent purchase of One Medical, a primary care organization, for nearly $4 billion. 

“This is a major step as we continue to execute on our strategy,” CVS Health EVP and CFO Shawn Guertin said in a statement. “We expect the acquisition to be meaningfully accretive to earnings and, as a result, are increasingly confident we can achieve our long-term adjusted EPS goals as outlined at our Investor Day in December 2021.”