Evolent Health (NYSE:EVH) said yesterday it completed its acquisition of commercial business assets from New Mexico Health Connections for approximately $10.3 million in cash.
Assets purchased in the deal included a commercial plan and health plan management services organization which will be operate under the newly formed entity True Health New Mexico, a wholly-owned subsidiary of Washington D.C.-based Evolent Health.
As of the end of last year, the newly acquired plans had a total of just under 20,000 members, the company said.
New Mexico Health Connections will continue to operate as an independent non-profit health care organization in New Mexico, Evolent Health said, with the newly formed True Health New Mexico entity planning to ink a managed services agreement with the NMHC.
As part of the deal, Evolent said it expects to extend a 15-month capital-only reinsurance arrangement to NMHC, expected to be approximately $10 million, with True Health New Mexico acting as contract underwriter.
“As part of Evolent Health, True Health New Mexico is now positioned as a thriving alternative in the New Mexico commercial market. Working with our physician partners, we will continue to deliver differentiated care to our members and see multiple potential opportunities to grow True Health New Mexico,” True Health New Mexico CEO Dr. Martin Hickey said in a press release.
Last August, Evolent Health said it raised nearly $167 million in a secondary offering, saying it could use some of the proceeds on the M&A trail.
