Privia Health to Acquire Evolent's ACO Arm for $113 Million
Deal expands Privia's value-based care footprint by over 120,000 patients and is expected to boost EBITDA starting in 2026.
Privia Health (PRVA) has announced a strategic move to significantly expand its presence in the value-based care sector, entering into a for up to $113 million.
The acquisition deepens Privia's commitment to a healthcare model focused on patient outcomes. The deal structure includes a $100 million upfront cash payment, financed from Privia's existing reserves, with up to an additional $13 million contingent on performance metrics for the 2025 Medicare Shared Savings Program (MSSP). The transaction is anticipated to close in the fourth quarter of 2025.
This strategic purchase is set to add over 120,000 patients to Privia’s network across MSSP, commercial, and Medicare Advantage programs. This will bring the company's total number of patients in value-based care arrangements to approximately 1.5 million, marking a significant step in scaling its operations. Company officials stated the acquisition is expected to be accretive to Privia Health's Adjusted EBITDA beginning in 2026, signaling confidence in the financial and operational benefits of the integration.
Wall Street has reacted positively to the news, with analysts seeing the move as a logical expansion of Privia's core strategy. Prior to the announcement, analysts at KeyBanc Capital Markets had assessed a potential deal as being . The acquisition aligns with a broader trend in the healthcare industry, where providers are increasingly shifting from fee-for-service models to risk-bearing, value-based arrangements that incentivize quality and efficiency.
Following the news, sentiment around Privia Health remains strong. The company holds a , reflecting confidence in its growth trajectory within the accountable care space. The deal not only enhances Privia's market position but also offers synergy opportunities by allowing providers from the newly acquired ACOs to integrate into Privia's established Medical Groups, further streamlining care delivery and creating operational efficiencies.