Benzinga | Jan 13, 2021 07:13AM EST

Evolent Health Enters Agreement With Bright HealthCare For Bright HealthCare To Acquire Evolent Subsidiary True Health New Mexico; Terms Not Disclosed

WASHINGTON, Jan. 13, 2021 /PRNewswire/ -- Evolent Health, Inc. (NYSE:EVH) (the "Company" or "Evolent"), a health care company that delivers proven clinical and administrative solutions to payers and providers, today announced that it has entered a definitive agreement with Bright Health Management, Inc. ("Bright HealthCare"), a nationally recognized health plan owned by Bright Health, to acquire True Health New Mexico, Inc. ("TRUE"), a wholly-owned subsidiary of Evolent Health. The existing services contract between True Health New Mexico and Evolent will be maintained and as such, Evolent will continue to provide health plan administrative and clinical program support to True Health New Mexico.

"We are proud of what we have built together with the team at True Health New Mexico," said Evolent Health Chief Executive Officer Seth Blackley. "We are excited for the path forward for True Health New Mexico as it comes together with Bright HealthCare, a leading national high-growth integrated health plan. For Evolent, this transaction demonstrates our continued execution against our previously stated capital allocation framework and affirms our focus on creating shareholder value through strong organic revenue growth and robust margin expansion in our core services business."

"We are exceptionally grateful to our partners at Evolent for their founding of and ongoing support of True Health New Mexico," said Dr. Mark Epstein, President and CEO of True Health New Mexico. "We at TRUE are also impassioned to build upon our exceptional story of growth and improving affordability and the quality of care for the people of New Mexico as we transition to working with our new partners at Bright HealthCare."

Once complete, current employees and leadership of True Health New Mexico will join the Bright HealthCare team and continue to lead local market operations, ensuring continuity for members, providers and distribution partners. The transaction is subject to customary closing conditions and is expected to close during the first half of 2021.