Business
Evolent Announces Strategic Divestiture of its Value-Based Primary Care Business, Evolent Care Partners
Evolent Health, Inc. (NYSE: EVH) ("Evolent"), a company focused on achieving better health outcomes for people with complex conditions, today announced that it has agreed to sell its value-based primary care business, Evolent Care Partners ("ECP"), to Privia Health Group, Inc. (Nasdaq: PRVA). ECP is a leading participant in the Medicare Shared Savings Program ("MSSP"), partnering with more than 1,000 physicians across the nation to serve more than 120,000 members.
About this update from Evolent Health, Inc
[{"type":"list","items":[{"val":[{"type":"text","content":"Transaction enhances focus on specialty condition management and accelerates Evolent's deleveraging path.","length":109,"tagName":"p"}]},{"val":[{"type":"text","content":"Proceeds from the transaction to be used to prepay senior term debt; Immediately accretive to Evolent's free cash flow by more than $7 million per year.","length":156,"tagName":"p"}]},{"val":[{"type":"text","content":"Evolent reiterates outlook for Q3 2025 and full year 2025 for Revenue and Adjusted EBITDA, excluding the effect of the transaction.","length":131,"tagName":"p"}]}],"tagName":"ul","bulletedList":true,"length":396,"olType":false},{"type":"text","content":"WASHINGTON, Sept. 23, 2025 /PRNewswire/ -- Evolent Health, Inc. (NYSE: EVH) ("Evolent"), a company focused on achieving better health outcomes for people with complex conditions, today announced that it has agreed to sell its value-based primary care business, Evolent Care Partners ("ECP"), to Privia Health Group, Inc. (Nasdaq: PRVA). ECP is a leading participant in the Medicare Shared Savings Program ("MSSP"), partnering with more than 1,000 physicians across the nation to serve more than 120,000 members.","length":541,"tagName":"p"},{"type":"text","content":"Evolent Co-Founder and Chief Executive Officer Seth Blackley commented, "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. With the resulting lower interest burden, we expect this transaction to improve our annual cash flow by more than $7 million annually net of the reduced cash generation from ECP. Finally, I'd like to thank the ECP team for all their contributions to Evolent and I know they will thrive at Privia."","length":627,"tagName":"p"},{"type":"text","content":"Total transaction value of up to $113 million is payable in cash, with $100 million at closing and the balance in Fall 2026 based on final MSSP performance for 2025. Evolent estimates the sold assets are generating roughly $10 million in adjusted EBITDA today and estimates the reduction in interest expense from debt prepayment will be approximately $10 million. The transaction is expected to close d...