Evolent Health announced the strategic sale of its value-based primary care business, Evolent Care Partners, to Privia Health Group for up to $113 million, aiming to sharpen its focus on specialty condition management and enhance cash flow.

Target Information

Evolent Health, Inc. (NYSE: EVH), a leading organization dedicated to enhancing health outcomes for individuals with complex health conditions, has announced the strategic divestiture of its value-based primary care business, Evolent Care Partners (ECP), to Privia Health Group, Inc. (Nasdaq: PRVA). ECP is a prominent participant in the Medicare Shared Savings Program (MSSP), collaborating with over 1,000 physicians nationwide and serving more than 120,000 members. This divestiture marks a significant transformation for Evolent as it shifts its focus towards specialty condition management.

ECP's operations have been profitable and have significantly contributed to Evolent's revenue streams. The sale encompasses a total transaction value of up to $113 million, with $100 million payable at closing and the remainder contingent on ECP’s performance in MSSP for 2025. The sold assets are currently generating approximately $10 million in adjusted EBITDA.

Industry Overview

The healthcare landscape within the United States continues to evolve, particularly in the realm of value-based care models, such as those utilized by ECP. The Medicare Shared Savings Program has emerged as a crucial fra