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Highlights
- Potential investors are looking for VillageMD IPO after Walgreens invested US$ 5.2 billion in the company.
- By investing in VillageMD, Walgreens plans to open 600 primary care clinics in more than 30 US markets by 2027.
- Learn more about the VillageMD IPO plans in this article.
Walgreens Boots Alliance Inc. (NASDAQ:WBA) said on Thursday, October 14, that it has agreed to become the majority owner of VillageMD, a company that provides primary care to the communities where patients live and work. Walgreens is a leading retail pharmacy chain, and it has over 21,000 stores in 11 countries. It will invest US$ 5.2 billion in VillageMD and will increase the ownership stake from 30 per cent to 63 per cent.
Notably, VillageMD will remain an independent company with its board of directors and management. Due to this reason, potential investors are wondering about the primary healthcare provider's initial public offering.
On that note, we will further explore the US$ 5.2 billion investment into VillageMD and its IPO plans.
Why is Walgreens investing US$ 5.2 billion in VillageMD?
Walgreens aims to expand its business operations and turn its stores into healthcare destinations with doctors who can prescribe medicines and provide other types of care. The company has plans to set up Village Medical clinics at its existing drugstores.
By 2025, Walgreens plans to open 600 primary care clinics in more than 30 US markets, and by 2027, it expects to increase the figure to 1000 clinics.
With this extra boost of investment, VillageMD could formulate new strategies for providing comprehensive care and expand its services. The company is known to deliver high-quality primary care, and its physician-led care teams include lab technicians, pharmacists, behavioural health specialists and nurses.
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Bottom line
VillageMD will remain a standalone company, the company has public debut plans, and it will likely conduct an IPO in 2022. The primary healthcare services provider has over 230 practices across 15 markets and has expansion plans.
The company is growing rapidly, and its revenues have increased from US$ 217 million in 2017 to US$ 1.3 billion expected in 2021.
VillageMD and Walgreens have set up 52 primary-care clinicians and are planning to open an additional 33 clinics by the end of this year.
