Written by : Dr. Aishwarya Sarthe
January 8, 2025
The merger agreement stipulates that NeueHealth’s common stockholders will receive $7.33 per share in cash, reflecting a premium of approximately 70% over the closing stock price as of December 23.
NeueHealth, a company specializing in value-based care technology for healthcare providers and payers, has announced its acquisition by an affiliate of New Enterprise Associates (NEA) for $1.3 billion.
The deal will result in NeueHealth becoming a privately held company.
The merger agreement stipulates that NeueHealth’s common stockholders will receive $7.33 per share in cash, reflecting a premium of approximately 70% over the closing stock price as of December 23.
A portion of the company’s stockholders, including NEA and 12 existing investors, will enter rollover agreements, swapping their shares for equity interests in the new privately held entity. This move will ensure the continued investment of these stakeholders in NeueHealth’s future.
Furthermore, the company’s secured loan facility with Hercules Capital will remain in place following the transaction, ensuring the stability of the company’s financial structure.
NeueHealth’s executive team will remain in their current roles after the acquisition, with plans to roll over 100% of their equity interests into the newly privatized entity.
The transaction is subject to approval by NeueHealth’s stockholders and the completion of other regulatory requirements.
“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. 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," said Mike Mikan, president and CEO of NeueHealth.
In 2024, NeueHealth expanded its operations, particularly through the acquisition of the remaining 25% of Centrum Health, one of its value-driven clinic brands.
Additionally, NeueHealth secured a loan facility of up to $150 million from Hercules Capital to support its growth and operational priorities.
In the same year, the company also adopted NeueHealth as its official corporate brand, transitioning from Bright Health Group.
As part of this rebranding effort, NeueHealth began trading under the ticker symbol "NEUE" on the New York Stock Exchange.