NeueHealth to be acquired by NEA for $1.3 billion

Healthcare services company NeueHealth announced a definitive merger agreement to be acquired by an affiliate of New Enterprise Associates for approximately $1.3 billion. The deal includes a cash payment of $7.33 per share, reflecting a 70% premium over NeueHealth’s December 23, 2024, closing price.

NEA and other investors, including holders of preferred stock, will roll over their equity into the privately held company, with the existing Hercules Capital loan facility remaining in place. NeueHealth’s executive team will retain their positions and equity stakes post-transaction. Upon closing, NeueHealth will transition to private ownership to further its focus on value-based care.

Founded in 2015 as Bright Health, NeueHealth has raised nearly $2.66 billion from several investors, including Cigna Ventures and New Enterprise Associates (NEA). It reported a $40 million net loss for Q3.

“We are pleased to announce this transaction as we believe it places NeueHealth in a strong position for continued growth while maximizing value for all of NeueHealth’s public stockholders. NEA has been a longstanding strategic partner, and we look forward to continuing to work together to build on NeueHealth’s success as a leader in value-based care.” – Mike Mikan, President and CEO of NeueHealth.

“We believe NeueHealth has built a differentiated model of care that is uniquely positioned to drive value for consumers, providers, and payors and we have confidence in the NeueHealth team and their ability to continue to lead the Company. We have had a strong partnership with NeueHealth since 2016 and share the Company’s commitment to making high-quality healthcare accessible and affordable for all Americans.” – Mohamad Makhzoumi, Co-CEO of NEA.