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Evolent picks up New Century
Posted on Wednesday, 12 September 2018 14:44
Evolent Health has entered into an agreement to buy US-based provider of speciality medical care New Century Health for USD 217.00 million.
The transaction’s consideration comprises USD 3.10 million in Evolent Class B shares, USD 120.00 million in cash at closing, and a further USD 20.00 million in earn outs.
Subject to closing conditions and regulatory approvals, the purchase is expected to complete within the next 120 days.
As a result of the deal, Evolent gains access to the target’s proprietary technology healthcare platform, which enables the company to prioritise speciality care for cancer patients and clients with cardiac-related conditions.
The buyer will also increase its customer base through New Century’s 12 operating partners across the US, which include organisations focusing on regional and national health plans, among others.
Seth Blackley, president of Evolent, said: “The acquisition will also expand access to the payer market directly and allow us to facilitate collaboration between payers and providers. “
Upon closing, the two companies will provide health care services to over 3.50 million customers with their combined network of more than 40 partners.
Evolent expects the target to post adjusted earnings before interest, taxes, depreciation and amortisation of USD 177.00 million for the 12 months ending 30th June 2018.
Formed in 2002, New Century, according to its website, is billed as the national health leader in the management of speciality care.
It currently has licenses to provide quality management across all US states, and has a client base of clinical professionals that includes 8,000 oncologists in 39 states.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 1,413 deals targeting health care and social assistance providers announced worldwide since the beginning of 2018.
Of these, the largest featured KKR acquiring Envision Healthcare for USD 9.90 billion.
© Zephus Ltd