Arlington, Va.-based Evolent Health announced today that it entered into a definitive agreement to acquire Valence Health in Chicago for approximately $145 million, according to Valence Health officials.
The transaction excludes Valence contracts serving five state insurance co-ops, as those contracts will be transferred to a separate entity owned by Valence shareholders. This entity, account for more than $35 million in annual revenues, will becom the new Chicago-based arm called Cicerone.
Together, the organizations will be able to offer comprehensives services and technology to serve more than 1.8 million people. The companies expect the acquisition to close in late fall, subject to regulatory approvals and closing conditions.
"By adding Valence Health's services to Evolent, we expect to strengthen our operational capabilities and expertise, expanding our ability to support provider organizations in delivering higher quality, lower cost care," said Evolent CEO Frank Williams. "We have tightly aligned visions of improving health care through innovative technology and services that help providers succeed as the industry continues its adoption of value-based payment models…we are looking forward to welcoming Valence Health employees and clients to the Evolent team.”
This story was updated July 14 with added information about Cicerone.
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