Evolent Care Partners to be Acquired by Privia (~10x EBITDA)
- Will Hamilton
- Sep 24, 2025
- 2 min read
On September 23, 2025, Privia Health Group, Inc. (Nasdaq: PRVA) entered into a definitive agreement to acquire the Accountable Care Organization (ACO) business of Evolent Health, Inc. (NYSE: EVH), operating under the Evolent Care Partners (ECP) brand. The transaction provides Privia with more than 120,000 attributed lives across the Medicare Shared Savings Program (MSSP) as well as various commercial and Medicare Advantage programs, expanding Privia’s total value‑based care footprint to approximately 1.5 million lives across commercial, Medicare, Medicare Advantage and Medicaid arrangements. Under the terms of the deal, Privia will pay $100 million in cash at closing, with an additional up to $13 million contingent on 2025 MSSP performance, and the acquisition is expected to close in the fourth quarter of 2025 and contribute positively to Privia’s adjusted EBITDA in 2026.
The strategic acquisition deepens Privia’s presence in value‑based care delivery and population health management, broadening its network of physician partners and strengthening its ability to drive quality outcomes while managing costs. ECP’s MSSP performance, combined with Privia’s differentiated operating model and scalable technology platform, creates opportunities to enhance care coordination, improve shared savings rates, and integrate additional provider groups into Privia’s medical group ecosystem. For Evolent Health, the divestiture enables a sharper focus on its core specialty condition management businesses and accelerates debt reduction efforts, with proceeds used to prepay borrowings and improve annual free cash flow.
Provider Enablement / Multi-Provider Network EBITDA Multiples
According to the press release, EBITDA was approximately $10 million, implying an EBITDA multiple of 10x upfront cash consideration, and 11.3x if the contingent payment is included.
Healthcare Professional Services M&A Deal Volume
The number of announced U.S. professional services deals (licensed healthcare provider groups like physicians, dentists, and physical therapists) declined again in 2025. Volume averaged 25 per quarter in 2025, down from 270 per quarter in 2024, 295 per quarter in 2023, and 298 in 2022. Generally, continued growth in the dentistry and medspa / aesthetics segments have offset modest declines across most of the remaining segments, including significant declines among physician practices.
Other Professional Services Deals
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About Scope Research
The Scope Research Healthcare M&A Valuation Database currently has financial details related to 434 dentistry, physical therapy, and physician practice deals, segmented by specialty, including 290 deals with disclosed EBITDA multiples. The data can be purchased individually, while our affordable annual subscriptions provide access to all of our healthcare M&A databases and segments, updated continuously.
Don't hesitate to reach out to Will Hamilton at will@scoperesearch.co with questions about your specific situation.
