SEPTEMBER 22 (Reuters) – U.S. primary care provider Kano Health is considering a sale after receiving an acquisition interest and is working with advisers, according to people familiar with the matter. there is

Cano Health has attracted acquisition interest from potential buyers including Humana Inc and CVS Health Corp (CVS.N), sources said.

Cano, which went public last year after a merger with a special-purpose acquisition firm backed by billionaire Barry Sternlicht, has attracted buyout interest after last month’s poor performance, prompting the company to consider a sale, one of the sources said. said.

Sources said the deal could close in the coming weeks.

Cano declined to comment, saying Humana and CVS do not comment on rumors or speculation.

CVS and Humana are both among the companies in talks with Cano about a deal, according to sources, with Humana having a priority in the sale as part of an agreement between the two companies in 2019. Cano’s shares are 32% after some erosion of its pre-closed gains, giving it a market capitalization of around $4.1 billion.

The Wall Street Journal first reported on Thursday about talks between Mr. Kano and potential buyers. Bloomberg first reported Kano’s meeting with CVS.

The sources, who requested anonymity because these discussions are confidential, warned that talks with buyers could fall apart and Kano might choose to remain independent.

Healthcare companies have expanded beyond managing health and pharmacy benefits in recent years with the acquisition of physician groups and surgical centers.

Cano operates primary care centers in several US states, including California, Florida, Nevada, New Mexico, Texas, Illinois and New York.

Hedge fund Third Point LLC, which owns 6.4% of Cano, has pressed the Miami-based company to sell after its share price plummeted after going public.

Additional reporting by Mrinalika Roy, Bangalore. Edited by Shailesh Kuber and Josie Kao

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