Amazon is considering acquiring signify health, which will further push the technology giant into the medical field.
The Wall Street Journal reported on Sunday that Amazon is one of several companies bidding for signify health, which will be sold at the auction. According to the Wall Street Journal, the transaction may make the medical service provider worth more than $8 billion.
An Amazon spokesman said the company would not comment on speculation.
CVS health Corp. and United Health Group Co., Ltd. are among the other bidders for signify health, which provides technologies to help family care. Its customers include healthcare enterprises, government operated projects and others.
Update: on Monday morning, the share price of signify soared more than 35%. Amazon’s share price fell by more than 3%.
Last month, Amazon said it planned to buy one medical, a primary health care provider, for $3.9 billion, one of the largest acquisitions the company has made so far. Earlier this month, the company announced a plan to buy iRobot, a Roomba manufacturer, for $1.7 billion, which will bring its annual acquisition expenditure to a new high.
A key question is how much antitrust scrutiny Amazon’s recent acquisition will face. On July 27, the U.S. Federal Trade Commission announced that it would try to prevent the parent company of Facebook, meta, from acquiring the virtual reality fitness application supernatural, which clarified its new outlook for technology acquisition. John Newman, an official of the Federal Trade Commission, accused meta of trying to “buy market positions rather than earn according to actual conditions.”
It is reported that Amazon will take decoupling from any rumors or public speculation about its courtship with a medical institution as its strategic focus. CVS is also bidding for the company. According to statistical news, the bidding between Amazon and CVs further proves that large companies hope to further expand the medical technology field.
The market value of signify at the time of reporting was close to US $5 billion.