Tag: Windrose Health Investors

Arlington-based Evolent Health Inc. has entered into a definitive agreement to acquire telehealth company Vital Decisions for $85 million, with a potential earnout of up to $45 million, Evolent announced Wednesday.

Based in Edison, New Jersey, and founded in 2006, Vital Decisions is a portfolio company of WindRose Health Investors LLC, a New York-based private equity firm that invests in health care companies. Vital Decisions will become part of Evolent’s New Century Health subsidiary, a California-based specialty care management company focused on improving outcomes in oncology and cardiology through provider collaboration. Evolent acquired New Century Health in 2018.

“Cancer and heart disease account for more than 50% of deaths in the United States and drive a substantial portion of healthcare services at the end of life,” New Century Health CEO Dan McCarthy said in a statement. “The addition of Vital Decisions to New Century Health will help ensure that the care plans for these and other individuals facing advanced illness align with their core values and personal preferences.”

Vital Decisions President and CEO Leah Puccio said, “New Century Health has developed a robust provider engagement platform, and it’s a privilege to combine capabilities so we can continue improving health outcomes and quality of life for our members, while reducing costs for our customers.”

The companies expect the transaction to close later this year. At closing and subject to certain adjustments, approximately $85 million of the purchase price will be paid and issued, consisting of 50% Evolent Class A common stock and 50% cash, according to a news release. The remainder of the purchase price consists of an earnout of up to $45 million, payable solely in cash or in a mix of cash and Evolent Class A common stock at Evolent’s discretion, tied to the achievement of certain profitability metrics in the fourth quarter of 2022.