Evolent Expands Its Portfolio For Musculoskeletal Conditions With This Deal

Loading...
Loading...

 


  • Evolent Health Inc EVH has agreed to acquire IPG, a technology and services company providing surgical management solutions for musculoskeletal conditions, from TPG Growth.

  • The deal value includes $375 million plus additional consideration of up to $87 million. It is expected to close in Q3 of 2022.

  • Upon close, the IPG team and platform will be integrated into New Century Health.

  • The deal expands Evolent's specialty focus to include surgical cost management focusing on musculoskeletal conditions, adding to its specialty portfolio of oncology, cardiology, and end-of-life care planning.

  • Evolent Health expects the transaction to be immediately accretive to adjusted EBITDA margins and cash flow.

  • It expects meaningful revenue cross-sell synergy opportunity with health plan and risk-bearing provider customers.

  • For 2022, IPG standalone revenues are expected to be $140 million, with an adjusted EBITDA of $25 million (approximately 18% margin) and annual sales growth of over 20%.

  • Evolent will fund $250 million of the purchase price in cash through a combination of $25 million cash on hand and proceeds from a new $225 million Five Year Senior Credit Facility provided by Ares Management.

  • Evolent ended the March quarter with a cash balance of $210.2 million.

  • Price Action: EVH shares closed at $30.88 on Tuesday.


  •  

 

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: BiotechEarningsM&ANewsHealth CareGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...