Privia Health Group, Inc. will acquire an Accountable Care Organization (ACO) business from Evolent Health, Inc. for $100 million in cash, plus up to $13 million based on performance in 2025. The deal is expected to close in Q4 2025 and positively impact Adjusted EBITDA in 2026, serving over 120,000 attributed lives.

This acquisition expands Privia Health’s value-based care (VBC) offerings to approximately 1.5 million attributed lives across commercial, Medicare, Medicare Advantage, and Medicaid. Evolent Health will finance the transaction with cash on its balance sheet, providing synergy opportunities for ACO-participating providers to join Privia’s Medical Groups.

Evolent Health reaffirmed its Q3 2025 revenue guidance of $460-$480 million and adjusted EBITDA of $34-$42 million. Before the transaction, its full-year 2025 outlook projected revenue of $1.85-$1.88 billion and adjusted EBITDA of $140-$165 million. Analysts praised the strategic value of the deal for Privia Health.

Approximately 80,000 of the acquired lives are MSSP participants, positioning Privia Health as an industry leader in cost and quality performance. EVH stock was up 12.60% to $9.45, while PRVA stock rose 1.15% at last check Wednesday. Analysts noted the potential for Privia to leverage its operational expertise with the new acquisition.

Read more at Yahoo Finance: Privia Health Acquires Evolent’s ACO Business To Boost Value-Based Care