NeueHealth, a company that connects providers and payers with technology to enable value-based care, announced it entered into a definitive merger agreement to be acquired by an affiliate of New Enterprise Associates (NEA) at a value of $1.3 billion, which, upon completion, will make NueHealth a privately held company.

Under the terms of the merger agreement, NeueHealth common stockholders will receive $7.33 per share in cash, a premium of roughly 70% over the closing price of NeueHealth common stock as of Dec. 23.

Meanwhile, some stockholders of the company, including NEA and 12 existing NeueHealth investors entered into rollover agreements, pursuant to which such stockholders will continue their investments by swapping their shares of NeueHealth common stock and or preferred stock for newly issued equity interests in the new privately held company.

In addition, the company's active secured loan facility with Hercules Capital will stay in place.

NeueHealth’s executive leadership team will remain in their current roles after the transaction, and they intend to roll over 100% of their equity interests for newly issued equity interests in the privately held company.

The merger is subject to approval by NeueHealth’s stockholders and other customary closing conditions, including receipt of certain regulatory approvals.

"We are pleased to announce this transaction as we believe it places NeueHealth in a strong position for continued growth while maximizing value for all of NeueHealth’s public stockholders," Mike Mikan, president and CEO of NeueHealth, said in a statement.

"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."

THE LARGER TREND

In 2024, NeueHealth announced that Centrum Health, one of its value-driven clinic brands, became a wholly-owned subsidiary through the company’s acquisition of the remaining 25% equity interest of the business that it did not already own. 

NeueHealth also entered into a secured loan facility for up to $150 million with Hercules Capital. The financing was used to support NeueHealth’s priorities in 2024 and beyond. 

Last year, Bright Health Group adopted NeueHealth as its corporate brand name. The move reflected the company’s ongoing focus on its NeueHealth business. The company’s common stock also began trading under the ticker symbol NEUE on the New York Stock Exchange (NYSE).