Arlington-based health system consultancy Evolent Health Inc. has reached an agreement to acquire Wellesley, Massachusetts-based specialty care management company New Century Health for up to $217 million.
The transaction includes 3.1 million shares of Evolent common stock and $120 million in cash when the deal closes, which is expected early in the fourth quarter of this year, the company announced Wednesday. The purchase price also comprises up to $20 million linked to future business activity, to be paid in cash or common stock in the first quarter of 2020.
Both Evolent (NYSE: EVH) and the privately-held New Century Health support provider organizations and insurance plans. But while Evolent’s focus lies in helping health systems shift to a population health model and manage performance-based payments, New Century Health’s bread and butter has been in cancer and cardiac care, specifically. Putting that business under Evolent’s roof will enable the Arlington firm to better manage…Read the full story from the Washington Business Journal.