NeueHealth, a healthcare services company focused on value-based care, announced its acquisition by an affiliate of New Enterprise Associates (NEA) in a deal valued at $1.3bn.
The move positions NeueHealth for enhanced growth and innovation under private ownership, according to InsurTech Insights.
Under the terms of the agreement, NeueHealth shareholders will receive $7.33 per share in cash, marking a 70% premium over the company’s closing price on December 23, 2024.
The acquisition allows NeueHealth to intensify its focus on value-based care while transitioning to private ownership. Existing investors, including Cigna Ventures and NEA, will retain equity stakes, showcasing their continued belief in the company’s potential.
NeueHealth, originally founded in 2015 as Bright Health, has raised approximately $2.66bn in funding.
The company provides healthcare services with a focus on value-based care, aiming to improve outcomes for consumers while reducing costs for providers and payors.
New Enterprise Associates (NEA) is a venture capital firm with extensive investments in technology and healthcare sectors.
With decades of experience, NEA seeks to support businesses that aim to innovate and deliver transformative solutions.
The transaction underscores NEA’s confidence in NeueHealth’s business model, describing it as a “differentiated model of care uniquely positioned to drive value.” NEA has been a strategic partner since 2016 and plans to continue its collaboration with NeueHealth to enhance healthcare accessibility and affordability.
NeueHealth president and CEO Mike Mikan said, “We are pleased to announce this transaction as we believe it places NeueHealth in a strong position for continued growth while maximising value for all of NeueHealth’s public stockholders. NEA has been a longstanding strategic partner, and we look forward to continuing to work together to build on NeueHealth’s success as a leader in value-based care.”
NEA co-CEO Mohamad Makhzoumi said, “We believe NeueHealth has built a differentiated model of care that is uniquely positioned to drive value for consumers, providers, and payors and we have confidence in the NeueHealth team and their ability to continue to lead the company.”
He added: “We have had a strong partnership with NeueHealth since 2016 and share the company’s commitment to making high-quality healthcare accessible and affordable for all Americans.”
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