Evolent Health, Inc.’s Acquisition of New Mexico Health Connections

Cadwalader represented New Mexico Health Connections (NMHC) in the sale of its commercial health insurance business to Evolent Health, Inc.

Evolent Health, Inc. (NYSE: EVH) (“Evolent”), a company providing an integrated value-based care platform to the nation’s leading health systems and physician organizations, today announced the completion of its acquisition of certain assets from New Mexico Health Connections (NMHC). First announced on September 27, 2017, this strategic acquisition brings together two innovative companies that will operate a new health plan and managed services organization called True Health New Mexico.

The transaction closed on the originally announced terms, with Evolent acquiring assets related to the commercial business from New Mexico Health Connections (NMHC) for $10.25 million in cash. The assets include a commercial plan and health plan management services organization with a tenured leadership team and employee base with extensive experience working locally with providers to run NMHC’s suite of preventive, disease and care management programs. The assets are being contributed to a new entity, True Health New Mexico, Inc., a wholly-owned subsidiary of Evolent Health. As of December 31, 2017, the membership in the commercial plan was just under 20,000 members.

The legacy NMHC entity expects to continue to operate as an independent non-profit health care organization operating throughout the state of New Mexico, offering individual health insurance products. True Health New Mexico expects to enter into a managed services agreement with NMHC to support this ongoing individual business.

The Cadwalader team includes Corporate partners Stephanie Marcantonio (Picture), Bill Mills, and Paul Mourning, associates Peter Bariso and Michael DiFiore and Gianna Sagan; Executive Compensation, Benefits & ERISA partner David Teigman; Tax partner Linda Swartz and special counsel Jean Bertrand; and Intellectual Property partner Dorothy Auth and associate Michael Sebba.

Involved fees earner: Stephanie Marcantonio – Cadwalader Wickersham & Taft; William Mills – Cadwalader Wickersham & Taft; Paul Mourning – Cadwalader Wickersham & Taft; Peter Bariso – Cadwalader Wickersham & Taft; Michael DiFiore – Cadwalader Wickersham & Taft; Gianna Sagan – Cadwalader Wickersham & Taft; David Teigman – Cadwalader Wickersham & Taft; Linda Swartz – Cadwalader Wickersham & Taft; Jean Marie Bertrand – Cadwalader Wickersham & Taft; Dorothy Auth – Cadwalader Wickersham & Taft; Michael Sebba – Cadwalader Wickersham & Taft;

Law Firms: Cadwalader Wickersham & Taft;

Clients: New Mexico Health Connections ;

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Author: Ambrogio Visconti