Evolent acquires $145 million majority stake in Valence Health
Evolent Health and Valence Health have reached a definitive agreement for Evolent to purchase the majority of Valence's business, excluding its state insurance cooperative contracts, for approximately $145 million, the companies announced today.
Established in 2011, Evolent supports providers moving to population health care models and manage performance-based payment models. Valence Health is a provider of value-based administration, population health and advisory services and technology. According to the announcement, the companies believe the merger will serve providers as they transition to value-based care.
"By adding Valence Health's services to Evolent, we expect to strengthen our operational capabilities and expertise, expanding our ability to support provider organizations in delivering higher quality, lower cost care," Evolent CEO Frank Williams, said in a statement.
"Practically, we expect the addition of Valence Health's talented team and their experience in
value-based administration will advance our ability to drive results for a broader set of clients, providers and patients," he added.
The partnership will offer technology and services to more than 1.8 million of patients, across 23 of the companies' operating partnerships. The acquisition has been unanimously approved by both companies' boards of directors. Frank Williams will continue to serve as CEO of the new joint organization; the Evolent Board of Directors will also remain unchanged.
The companies said the transaction is expected to close within the next 120 days and is subject to regulatory approvals and closing conditions established in the agreement.
"Our two organizations are culturally and operationally aligned to deliver robust value-based administration and services to healthcare providers," Valence Health CEO R. Andrew Eckert said in a statement. "Combining our team's 20 years of clinical and strategic experience with Evolent's proven innovations in value-based care will allow us to better serve our clients with best-in-class technology, clinical models and administrative service capabilities."
The selling price consists of 5.84 million shares of Evolent Class A common stock and $35 million in cash. Under the acquisition terms, Valence's state insurance cooperative contracts will be transferred to a separate entity that will maintain operations and will be owned by Valence shareholders.
Twitter: @JessieFDavis
Email the writer: jessica.davis@himssmedia.com
