Privia Health to acquire ACO business from Evolent Health for $100M in cash

Privia Health (PRVA) announced that it signed a definitive agreement to acquire an accountable care organization business from Evolent Health (EVH). The ACO business cares for over 120,000 attributed lives through the Medicare Shared Savings Program, as well as various commercial and Medicare Advantage programs. With this transaction, Privia Health will now serve approximately 1.5M attributed lives in value-based care arrangements across commercial, Medicare, Medicare Advantage and Medicaid. Privia Health will pay $100M in cash at closing and up to an additional $13M subject to final MSSP performance for 2025. The transaction is expected to close in the fourth quarter of 2025, and is expected to positively contribute to adjusted EBITDA in 2026. The company will finance the transaction with cash on its balance sheet. This strategic transaction increases VBC attributed lives in existing Privia states, adds lives in new states, and also offers a synergy opportunity for the ACO-participating providers to join Privia’s Medical Groups for a full suite of services and technology platform.