• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • Subscribe

MassDevice

The Medical Device Business Journal — Medical Device News & Articles | MassDevice

  • Latest News
  • Technologies
    • Artificial Intelligence (AI)
    • Cardiovascular
    • Orthopedics
    • Neurological
    • Diabetes
    • Surgical Robotics
  • Business & Finance
    • Wall Street Beat
    • Earnings Reports
    • Funding Roundup
    • Mergers & Acquisitions
    • Initial Public Offering (IPO)
    • Legal News
    • Personnel Moves
    • Medtech 100 Stock Index
  • Regulatory & Compliance
    • Food & Drug Administration (FDA)
    • Recalls
    • 510(k)
    • Pre-Market Approval (PMA)
    • MDSAP
    • Clinical Trials
  • Special Content
    • Special Reports
    • In-Depth Coverage
    • DeviceTalks
  • Podcasts
    • MassDevice Fast Five
    • DeviceTalks Weekly
    • OEM Talks
      • AbbottTalks
      • Boston ScientificTalks
      • DeviceTalks AI
      • IntuitiveTalks
      • MedtechWOMEN Talks
      • MedtronicTalks
      • Neuro Innovation Talks
      • Ortho Innovation Talks
      • Structural Heart Talks
      • StrykerTalks
  • Resources
    • About MassDevice
    • DeviceTalks
    • Newsletter Signup
    • Leadership in Medtech
    • Manufacturers & Suppliers Search
    • MedTech100 Index
    • Videos
    • Webinars
    • Whitepapers
    • Voices
Home » Value-based healthcare: Evolent Health to pay $145m for Valence Health

Value-based healthcare: Evolent Health to pay $145m for Valence Health

July 13, 2016 By Brad Perriello

Evolent Health to acquire Valence HealthEvolent Health (NYSE:EVH) said today that it agreed to put up roughly $145 million to acquire value-based administration, population health and advisory services provider Valence Health.

The deal calls for Evolent, which took itself public in a $195.5 million offering last year, to pay $35 million in cash and another 5.84 million in EVH shares, which closed at $18.68 apiece yesterday (the stock was up 10.0% to $20.54 per share in mid-morning trading today as investors reacted to news of the buyout).

Another $50 million, or up to 3.9 million shares of EVH stock, is on the table as an earn-out option pegged to “future new business activity,” Evolent said. The Valence business is expected to boost revenues by $80 million to $85 million this year; the transaction is expected to close within 120 days, the company said. The buyout does not include Valence’s state insurance cooperative contracts, which are slated to be transferred to a separate entity owned by Valence’s shareholders.

“By adding Valence Health’s services to Evolent, we expect to strengthen our operational capabilities and expertise, expanding our ability to support provider organizations in delivering higher-quality, lower-cost care,” Evolent CEO Frank Williams said in prepared remarks. “Strategically, we have tightly aligned visions of improving health care through innovative technology and services that help providers succeed as the industry continues its adoption of value-based payment models. Practically, we expect the addition of Valence Health’s talented team and their experience in value-based administration will advance our ability to drive results for a broader set of clients, providers and patients. We are looking forward to welcoming Valence Health employees and clients to the Evolent team.

“The addition of the Valence Health business will provide increased scale and client diversification, and we expect it to accelerate our target timeline to adjusted [earnings before interest, taxes, depreciation and amortization] break-even in 2017 by 1 to 2 quarters,” Williams said. “We believe this transaction will strengthen our business strategically and financially and position it for continued growth well into the future.”

“Our two organizations are culturally and operationally aligned to deliver robust value-based administration and services to health care providers. Combining our team’s 20 years of clinical and strategic experience with Evolent’s proven innovations in value-based care will allow us to better serve our clients with best-in-class technology, clinical models and administrative service capabilities,” added Valence CEO Andrew Eckert.

J.P. Morgan Securities advised Valence on the deal, with Latham & Watkins as legal counsel. Bass, Berry & Sims was legal counsel to Evolent, the company said.

Filed Under: Mergers & Acquisitions, Wall Street Beat Tagged With: Evolent Health, Valence Health, value-based healthcare

More recent news

  • Medtronic earns CE mark for redo TAVI procedure
  • Natus Neuro launches BrainWatch AI-driven, point-of-care EEG
  • Boston Scientific has positive real-world Acurate Prime TAVI data
  • Johnson & Johnson MedTech launches ultrasound catheter for imaging in cardiac ablation procedures
  • Onward reports more successful BCI implants

Primary Sidebar

“md
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest med device regulatory, business and technology news.

DeviceTalks Weekly

See More >

MEDTECH 100 Stock INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
MDO ad

Footer

MASSDEVICE MEDICAL NETWORK

DeviceTalks
Drug Delivery Business News
Medical Design & Outsourcing
Medical Tubing + Extrusion
Drug Discovery & Development
Pharmaceutical Processing World
MedTech 100 Index
R&D World
Medical Design Sourcing

DeviceTalks Webinars, Podcasts, & Discussions

Attend our Monthly Webinars
Listen to our Weekly Podcasts
Join our DeviceTalks Tuesdays Discussion

MASSDEVICE

Subscribe to MassDevice E-Newsletter
Advertise with us
About
Contact us

Copyright © 2025 · WTWH Media LLC and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.

Privacy Policy