CVS Health Corp. agreed to acquire Oak Street Health Inc. for about $10.6 billion including debt, in the latest sign of the growing tie-ups between health insurers and primary-care doctors.

"Combining Oak Street Health's platform with CVS Health's unmatched reach will create the premier value-based primary care solution," said CVS Health President and CEO Karen Lynch.

The all-cash deal, for $39 a share, is expected to close in 2023, the companies said Wednesday. The Wall Street Journal reported Monday the companies were nearing a deal.

The Wall Street Journal reported in recent days that the two companies are close to reaching an agreement. As a result, OSH stock soared about 30% from the start of the week before adding a further 5% in pre-open Wednesday.

"This agreement with CVS Health will accelerate our ability to deliver on our mission and continue improving health outcomes, lowering medical costs, and providing a better patient experience while offering significant value to our shareholders," said Oak Street Health CEO Mike Pykosz.

CVS Chief Executive Karen Lynch has said adding primary-care doctors was a company priority. Acquiring physicians would help it to more closely manage and guide the care of patients, as well as bring down costs, she said.

Currently Oak Street is in 21 states. It aims to have more than 300 centers by 2026, the companies said. Ms. Lynch said the company would consider using CVS properties to expand Oak Street.

CVS on Wednesday also said net income and revenue rose in the quarter ended Dec. 31 compared with a year before, fueled by gains in the company’s insurance and pharmacy-services businesses.