Evolent Health to sell Evolent Care Partners to Privia Health for up to $113M

Evolent Health (EVH) announced that it has agreed to sell its value-based primary care business, Evolent Care Partners, to Privia Health Group (PRVA). ECP is a participant in the Medicare Shared Savings Program, partnering with more than 1,000 physicians across the nation to serve more than 120,000 members. Evolent Co-Founder and Chief Executive Officer Seth Blackley commented, “This strategic divestiture will allow us to focus on our core specialty business while accelerating our path to reducing leverage and improving cash flow. We plan to use all net proceeds to repay borrowings on our senior credit facility. With the resulting lower interest burden, we expect this transaction to improve our annual cash flow by more than $7 million annually net of the reduced cash generation from ECP. Finally, I’d like to thank the ECP team for all their contributions to Evolent and I know they will thrive at Privia.” Total transaction value of up to $113M is payable in cash, with $100M at closing and the balance in Fall 2026 based on final MSSP performance for 2025. Evolent estimates the sold assets are generating roughly $10M in adjusted EBITDA today and estimates the reduction in interest expense from debt prepayment will be approximately $10M. The transaction is expected to close during the fourth quarter of 2025.