NeueHealth to Be Acquired by NEA Affiliate in $1.3 Billion Deal

NeueHealth, a leading company in value-based care solutions that connects providers and payers through technology, has entered a definitive merger agreement to be acquired by an affiliate of New Enterprise Associates (NEA). The deal, valued at $1.3 billion, will transition NeueHealth into a privately held company.

As part of the agreement, common stockholders of NeueHealth will receive $7.33 per share in cash—a 70% premium over the closing price of the company’s stock as of December 23. Additionally, 12 existing NeueHealth investors, along with NEA, have agreed to rollover agreements, exchanging their existing shares for equity in the newly privatized entity.

The company’s current secured loan facility with Hercules Capital will remain intact, ensuring continuity in financial operations. NeueHealth’s executive leadership team will retain their roles post-merger, with the leadership rolling over their equity interests into the private company.

Subject to stockholder and regulatory approvals, the merger is anticipated to enhance NeueHealth’s market position while delivering strong returns to its public stockholders.

Mike Mikan, President and CEO of NeueHealth, commented on the development:

“We are pleased to announce this transaction as we believe it places NeueHealth in a strong position for continued growth while maximizing value for all of NeueHealth’s public stockholders. NEA has been a longstanding strategic partner, and we look forward to continuing to work together to build on NeueHealth’s success as a leader in value-based care.”

THE LARGER TREND

NeueHealth has made significant strides in recent years. In 2024, it acquired the remaining 25% equity interest in Centrum Health, solidifying its ownership of the value-driven clinic brand. The company also secured a $150 million loan facility from Hercules Capital to bolster its operational priorities.

Last year, Bright Health Group adopted NeueHealth as its corporate brand name, emphasizing its focus on value-based care solutions. NeueHealth’s common stock began trading under the ticker symbol NEUE on the NYSE, showcasing its growing prominence in the healthcare sector.

This merger with NEA is expected to propel NeueHealth toward further growth and innovation, reinforcing its leadership in value-based care.

Source: mobihealthnews

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