Privia Health to Acquire Evolent’s ACO Business in $100 Million Deal

Privia Health Group has announced plans to acquire Evolent Health’s accountable care organization (ACO) business, a move that will significantly expand its value-based care (VBC) presence across the United States.

Through the transaction, Privia Health will add more than 120,000 attributed lives from Evolent Care Partners, which participates in the Medicare Shared Savings Program (MSSP) as well as commercial and Medicare Advantage programs. Following the deal, Privia Health will serve approximately 1.5 million attributed lives in value-based care arrangements across commercial, Medicare, Medicare Advantage, and Medicaid.

Evolent Care Partners currently collaborates with more than 1,000 physicians. According to Privia Health, the acquisition increases attributed lives in existing states, adds coverage in new states, and provides an opportunity for ACO-participating providers to join Privia’s medical groups and access its suite of services and technology platform.

Privia Health currently operates in 15 states and the District of Columbia. The Evolent transaction will expand its footprint to 11 additional states, the company stated.

The deal includes a $100 million cash payment at closing, with up to $13 million in additional payments dependent on final MSSP performance for 2025. It is expected to close by the end of the year and contribute positively to adjusted EBITDA in 2026. Privia anticipates the acquisition will add approximately $10 million in adjusted run-rate EBITDA, financed with cash on hand.

“The addition of Evolent Health’s ACO business to our existing national network of ACOs reaffirms Privia Health’s ability to replicate our highly differentiated and flexible operating model with new provider partners across the U.S.,” said Sam Starbuck, Senior Vice President and President of Privia Care Partners, Privia Health. He added that the company looks forward to working with physicians and leveraging its expertise in population health and value-based care.

For Evolent Health, the divestiture marks a strategic shift. The company, which provides software solutions to support providers and insurers in transitioning to value-based care, said the sale will allow it to focus more closely on specialty condition management.

Evolent co-founder and CEO Seth Blackley said the move will help reduce debt and strengthen cash flow. He stated, “This strategic divestiture will allow us to focus on our core specialty business while accelerating our path to reducing leverage and improving cash flow. We plan to use all net proceeds to repay borrowings on our senior credit facility.” He added that with the lower interest burden, Evolent expects the deal to improve annual cash flow by more than $7 million, net of reduced cash generation from Evolent Care Partners.

Analyst reaction has described the agreement as favorable to both parties. William Blair analyst Ryan Daniels estimated that approximately 80,000 of the 120,000 attributed lives being acquired are MSSP lives, an area where Privia has shown strong performance. He also noted that the $100 million in proceeds will enable Evolent to reduce leverage by about 0.3x.

BTIG analyst David Larsen wrote that the deal aligns with both companies’ strengths, pointing out that Privia focuses on primary care and risk management, while Evolent specializes in complex specialty care, including oncology, cardiology, and musculoskeletal conditions. He noted that the arrangement allows each company to streamline operations and concentrate on its core areas.

Evolent reiterated its financial outlook, projecting third-quarter revenue of $460 million to $480 million and adjusted EBITDA of $34 million to $42 million. For the full year, the company expects revenue between $1.85 billion and $1.88 billion, with adjusted EBITDA ranging from $140 million to $165 million

Privia Health to Acquire Evolent’s ACO Business in $100 Million Deal

Privia Health, a leading physician enablement company, has announced plans to acquire Evolent Health’s Accountable Care Organization (ACO) business in a $100 million deal. This strategic acquisition aims to strengthen Privia’s presence in value-based care and expand its national network of physician partners.

The ACO business currently managed by Evolent Health supports a range of value-based care models, including Medicare Shared Savings Programs (MSSP) and commercial ACO arrangements. Through this acquisition, Privia Health will gain access to a broad network of physicians and patients across multiple states, allowing the company to enhance care coordination, improve outcomes, and reduce healthcare costs.

Strengthening Value-Based Care Capabilities

Privia Health has been steadily scaling its value-based care operations to help independent physicians thrive in changing reimbursement environments. By acquiring Evolent’s ACO assets, Privia will accelerate its ability to support providers in managing patient populations, leveraging data analytics, and achieving shared savings.

The move also positions Privia Health as a more influential player in the accountable care space. The addition of these assets will increase the company’s attributed patient base and expand its ability to implement population health strategies nationwide.