NeueHealth to be Acquired by NEA and Consortium of Investors in a Deal Valued at $1.3 Billion

NeueHealth Inc. will be taken private by NEA and a consortium of investors in a deal with an enterprise value of about $1.3 billion. Under the terms of the merger agreement, holders of NeueHealth common stock will receive $7.33 per share in cash. The merger agreement includes a 30-day "go-shop" period that will expire on January 23, 2025. NEA intends to finance the transaction with fully committed equity financing.

Introduction:
NeueHealth Inc. (NEUE), a value-driven healthcare company, announced on December 23, 2024, that it has entered into a definitive merger agreement to be acquired by an affiliate of New Enterprise Associates (NEA) and a consortium of investors [1]. The transaction, valued at approximately $1.3 billion, will make NeueHealth a privately held company, providing it with the flexibility and resources to continue advancing its consumer-centric care model.

Terms of the Merger:
Under the terms of the merger agreement, NeueHealth shareholders, excluding those rolling over their shares and certain excluded shares, will receive $7.33 per share in cash, representing a premium of approximately 70% over the closing price on December 23, 2024 [1]. NEA and 12 existing NeueHealth investors, who collectively hold all of the outstanding shares of NeueHealth preferred stock, have entered into rollover agreements to continue their investments by exchanging their shares for newly issued equity interests in the privately held company [1]. NeueHealth's existing secured loan facility with Hercules Capital, Inc., will remain in place [1].

Executive Leadership and Future Plans:
NeueHealth's executive leadership team will continue in their roles upon completion of the transaction, and the company intends to roll over 100% of their equity interests for newly issued equity interests in the privately held company [1]. Mike Mikan, President and CEO of NeueHealth, expressed his excitement about the transaction, stating that it would place the company in a strong position for continued growth while maximizing value for all public stockholders [1]. Mohamad Makhzoumi, Co-CEO of NEA, expressed confidence in NeueHealth's team and their ability to continue leading the company as a leader in value-based care [1].

References:
[1] "NeueHealth to Be Taken Private by NEA and Consortium of Investors." MarketScreener, December 23, 2024, https://www.marketscreener.com/quote/stock/NEUEHEALTH-INC-124007886/news/NeueHealth-to-Be-Taken-Private-by-NEA-and-Consortium-of-Investors-Form-8-K-48648035/