Evolent Health, Inc. announced it has agreed to sell its value-based primary care business, Evolent Care Partners (ECP), to Privia Health Group, Inc. The total transaction value is up to $113 million, with $100 million payable at closing and the balance in Fall 2026 based on final 2025 Medicare Shared Savings Program (MSSP) performance.
ECP is a significant participant in the MSSP, partnering with over 1,000 physicians nationwide to serve more than 120,000 members. Evolent Co-Founder and CEO Seth Blackley stated that this strategic divestiture will allow the company to focus on its core specialty business while accelerating its path to reducing leverage and improving cash flow.
Evolent estimates the sold assets are generating roughly $10 million in adjusted EBITDA, and the reduction in interest expense from debt prepayment is expected to be approximately $10 million, improving annual cash flow by over $7 million net of reduced ECP cash generation. The transaction is expected to close during the fourth quarter of 2025. Evolent also reiterated its Q3 and full-year 2025 revenue and Adjusted EBITDA outlook.
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