Privia Health Buys Evolent Health's ACO Business For $100M

Physician enablement company Privia Health Group plans to acquire Evolent Health’s accountable care organization (ACO) business, a move that will significantly expand its value-based care (VBC) footprint.

Through the transaction, Privia will gain Evolent Care Partners’ 120,000 attributed lives in the Medicare Shared Savings Program (MSSP) along with various commercial and Medicare Advantage (MA) programs. This will increase Privia’s total reach to 1.5 million attributed lives across commercial, Medicare, MA, and Medicaid. Evolent Care Partners also partners with over 1,000 physicians.

The acquisition will deepen Privia’s VBC presence in existing states, add attributed lives in 11 new states, and create opportunities for ACO-participating providers to join Privia’s Medical Groups and technology platform. Privia currently operates in 15 states plus Washington, D.C.

Financially, Privia will pay $100 million in cash upfront and up to $13 million more based on MSSP performance in 2025. The deal, expected to close by year-end, will be funded with cash on hand. It is projected to add around $10 million in run-rate adjusted EBITDA and contribute positively to adjusted EBITDA by 2026.

“The addition of Evolent Health’s ACO business reaffirms our ability to replicate our differentiated operating model with new provider partners nationwide,” said Sam Starbuck, SVP and President of Privia Care Partners. “We look forward to working with physicians to enhance patient experience, improve outcomes, and lower costs.”

For Evolent Health, the divestiture enables sharper focus on specialty condition management, including oncology, cardiology, and musculoskeletal care. CEO Seth Blackley said all proceeds will be used to repay senior credit facility borrowings, reducing leverage and improving annual cash flow by more than $7 million.

Analysts view the transaction as beneficial for both parties. William Blair noted that roughly 80,000 of the 120,000 attributed lives are MSSP, where Privia has already demonstrated strong cost and quality performance. BTIG analysts added that the ACO business aligns more closely with Privia’s focus on primary care and risk management, while Evolent can now concentrate on specialty care, which has always been its differentiator. Overall, they agree that the deal strengthens Privia’s VBC scale and financial profile, while allowing Evolent to sharpen its strategic focus and improve cash flow.

Evolent reaffirmed its Q3 outlook of $460 million to $480 million in revenue and $34 million to $42 million in adjusted EBITDA, with full-year guidance at $1.85 billion to $1.88 billion in revenue and $140 million to $165 million in adjusted EBITDA.