Managed care company Evolent Health (NYSE: EVH) made its first acquisition in two years with the purchase of privately held New Century Health for up to $217 million.
New Century, previously owned by NCIS Holdings, Inc., is a specialty care management company focused primarily on cancer and cardiac care. It manages approximately 462,000 Medicare Advantage (MA) lives under performance-based arrangements and provides administrative services to several partner organizations.
The price is based on 3.1 million shares of EVH Class B common stock and $120 million at closing, as well as an earn-out of up to $20 million tied to future new business activity.
Just for fun, that works out to only $470 per MA member, but 1.2x revenue and 10.9x EBITDA.
The organizations will offer comprehensive specialty care management services and technology across Medicare Advantage, Medicaid and commercial populations. Upon closing, the companies will serve more than 3.5 million lives across more than 40 long-term operating partners.
Back in July 2016, Evolent paid $145 million for Valence Health, a healthcare IT and services firm that provides value-based care solutions for hospitals, health systems and physicians.
Similar to the New Century Health transaction, Valent’s price was based on the closing price of Evolent’s Class A common stock on July 12, 2016, and consisted of 5.84 million shares of Evolent Class A common stock and $35 million in cash.
