Walgreens unit close to nearly $9B merger with Summit Health

A unit of Walgreens Boot Alliance Inc. is nearing a deal to merge with a big owner of medical practices and urgent-care centers in a transaction worth roughly $9 billion including debt, according to sources close to the matter.

The drugstore mogul’s primary-care-center subsidiary, Village Practice Management, would combine with Summit Health, the parent firm of CityMD urgent-care centers, in a deal that could be finalized as early as Monday.

Cigna Group, a health insurance firm is expected to invest in the combined company, sources reported.

There is no confirmation the parties will reach a deal, the sources cautioned, noting that they are still fine-tuning the details of an agreement.

Backed by private-equity firm Warburg Pincus LLC, Summit Health has over 370 locations in New Jersey, New York, Connecticut, Central Oregon, and Pennsylvania, according to the company’s website. Existing and former physicians also own a large interest in the enterprise.

In 2021, grocer Walgreens announced it had made a $5.2 billion investment in VillageMD, raising its stake to 63%. At the time, Walgreens said the investment would help quicken the opening of nearly 600 Village Medical at Walgreens primary-care practices across the country by 2025 and 1,000 by 2027.