Evolent Health in Sale Talks Amid Private Equity and Industry Interest

Evolent Health is in discussions with private equity firms and healthcare services providers for a potential sale following takeover interest. Private equity players like TPG, CD&R, and KKR have shown interest, while Elevance Health has withdrawn. Evolent's market value is around $3.8 billion.

Evolent Health is exploring a potential sale and is in discussions with private equity firms and healthcare service providers, according to sources familiar with the matter. The process began after the company received takeover interest.

Among the interested parties are private equity firms TPG, Clayton, Dubilier & Rice (CD&R), and KKR, alongside healthcare insurer Elevance Health, which has since exited the bidding process, a source revealed. Evolent's shares surged over 18% on the news.

Evolent, which collaborates with healthcare providers and insurers like Humana, is a software provider that supports the transition from fee-for-service to value-based care models. The company reported rising revenue but missed market expectations due to lower billing rates. Discussions are still in early stages, and a deal is not guaranteed.