Chicago-based VillageMD to pay $8.9 billion to acquire care provider, with help from Walgreens

Chicago-based VillageMD, which has primary care clinics in Walgreens stores across the country, will pay $8.9 billion to acquire a company that will help it to branch into specialty and urgent care and grow its footprint dramatically.

VillageMD announced Monday that it has entered into an agreement to acquire Summit Health-CityMD, which provides primary, urgent and specialty care in New York, New Jersey, Connecticut, Pennsylvania, and Central Oregon.

VillageMD has Village Medical clinics that provide primary care in free-standing locations and inside Walgreens stores in more than a dozen states, including Illinois, Arizona, Nevada, Michigan, Indiana, Florida and several northeastern states. VillageMD has more than 250 locations.

Together, VillageMD and Summit Health will have 680 provider locations across the country.

Deerfield-based Walgreens is contributing $3.5 billion to the acquisition, through debt and equity. Walgreens is the largest shareholder in VillageMD, with about 53% ownership.

Evernorth, which is Cigna Corporation’s health services organization, is also investing in the acquisition and will be a minority owner in VillageMD.

More to come.