In addition to the NIA acquisition, Evolent and Centene are expanding Centene's relationship with NIA and extending NIA's contracts with Centene through 2027. Upon close, the NIA team and platform will be fully integrated into Evolent's value-based specialty care business, which includes New Century Health, Vital Decisions and IPG. The upfront consideration will be funded in part by $250 million in Evolent equity issued to the sellers at a price of $29.50, a 24% premium to the prior day's closing price, subject to lock-up provisions. Consideration for the acquisition includes $650 million at close plus additional contingent consideration of up to $150 million based on 2023 performance. Contracted service expansions from Centene combined with identified cost synergies are expected to increase run-rate Adjusted EBITDA to $85 million and be fully realized by the fourth quarter of 2024. NIA has revenues of approximately $250 million and stand-alone Adjusted EBITDA of approximately $50 million. ("Evolent" or "the Company") (NYSE: EVH) today announced that it has entered into a definitive agreement to acquire NIA (also known as Magellan Specialty Health), the specialty benefit management organization owned by Centene Corporation (NYSE: CNC) that focuses on managing cost and quality in the areas of radiology, musculoskeletal, physical medicine, and genetics. 17, 2022 /PRNewswire/ - Evolent Health, Inc. Expands Centene Customer Relationship with New NIA Contract Expansions and is Expected to Accelerate Pace of Remaining Evolent Cross-Sell Opportunity with Centene.Diversifies Evolent's Revenue Base and Increases Cross-Sell Opportunity from $16 Billion to $50 Billion.Highly Complementary Business Expected to Add $85 Million of High-Visibility Adjusted EBITDA by 2024 Maintains Strong Balance Sheet. Transaction Anticipated to be Immediately Accretive to Adjusted EBITDA Margins and Cash Flow.Accelerates Evolent Health's Value-Based Specialty Care Market Leadership.
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