Evolent Well being (NYSE:EVH) to acquire Georgia-based IPG, a number one expertise and providers firm offering surgical administration options for musculoskeletal circumstances, from TPG Progress for $375 million in money plus extra contingent consideration of as much as $87 million.
The transfer diversifies buyer combine and accelerates Evolent Well being entry into business line of enterprise.
Pursuant to the deal, the IPG crew and platform will likely be built-in into New Century Well being.
The addition is anticipated to speed up Evolent Well being’s place as a number one supplier of value-based specialty care options and expands its specialty care options portfolio to musculoskeletal circumstances.
The deal is anticipated to be instantly accretive to adjusted EBITDA margins and money movement.
The corporate expects to fund $250 million of the acquisition value in money, by a mixture of $25 million money readily available and proceeds from a brand new $225 million 5 Yr Senior Credit score Facility supplied by funds managed by the credit score group of Ares Administration.
The steadiness of the upfront consideration will likely be within the type of newly issued Evolent frequent shares.
The deal is anticipated to shut throughout the third quarter of 2022.
The corporate reaffirmed its outlook for the second quarter of 2022 and full 12 months 2022 earlier than the acquisition of IPG, as originally issued on May 4, 2022 and expects to supply up to date full 12 months steerage incorporating the acquisition on its second quarter, 2022 earnings report and convention name in early August.
At closing, professional forma for the transaction, the corporate is concentrating on trailing twelve-month internet debt to Adjusted EBITDA ratio of roughly 2.9-times and the corporate anticipates concentrating on internet leverage of beneath 2.5-times inside twelve months following the shut of the transaction.
Convention name on June 29, 2022 at 8:00 am Japanese Time.
