Cano Health explores sale amid interest from Humana, CVS Health
Cano Health is considering a sale after takeover interest from major healthcare players, including CVS Health and Humana, according to several media outlets.
Cano Health is a healthcare services provider for seniors serving Medicare and Medicaid patients. The Florida-based company went public last year after a merger with investor Barry Sternlicht's special purpose acquisition company.
The company’s share price, which soared upon news of acquisition interest, has been the object of ire for the company’s third-largest owner, Third Point LLC, which owns 6.4%. Earlier this year, Third Point, a hedge fund, urged the company to put itself up for sale due to its low share price, which dropped in value following its merger.
Now, Humana and CVS reportedly have their eye on Cano, and the talks are in a serious stage with the possibility of reaching an acquisition agreement in the coming weeks, The Wall Street Journal reported.
Cano already has business with Humana as its biggest independent primary care provider in Florida. Humana was also the exclusive health plan for Medicare Advantage for Cano’s 11 medical centers in Texas and Nevada. The move also aligns with Humana’s ongoing push into primary care.
Cano has also been the target of Owl Creek Asset Management LP, which sent a letter to Cano’s board urging the exploration of a sale.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."