Evolent Health, a healthcare technology provider based in Arlington, Va., is exploring a merger with Washington D.C.-based The Advisory Board Company, a business consulting company that helped launch Evolent five years ago, people familiar with the matter told Reuters.
Although Evolent has had discussions with private equity firms about securing financial backing for the transaction, Evolent may not seal the deal, as other companies have shown interest in Advisory Board, according to the report.
The people familiar with the matter told Reuters that Advisory Board has received preliminary offers and will continue talks with bidders in the coming weeks.
It also isn't clear what form the transaction will take. Sources told Reuters the deal could involve the sale of Advisory Board's entire company or just divestment of its healthcare arm.
In January, Advisory Board said it planned to cut about 220 jobs, or 5.7 percent of its total workforce. In February, the company said it was exploring potential strategic options.
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