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Evolent Health (EVH) could see $35 a share in a takeover from a personal fairness agency, based on a Truist analyst, after a report that the corporate is in talks for a sale after takeover curiosity.
Evolent (EVH) shares surged 14% on Thursday after Reuters reported that PE corporations TPG (TPG), KKR (KKR) and CD&R are amongst events which have expressed curiosity in a potential deal. Health insurer Elevance Health (ELV) can be among the many bidders who could staff up with a PE agency for a deal.
“We have all the time believed that an LBO transaction doubtless made more sense for EVH than a strategic transaction involving a well being insurer, given the danger round EVH’s medical insurance partnerships ensuing in battle of curiosity,” Truist analyst Jailendra Singh wrote in a observe on Friday.
A PE agency will pay ~$35 a share and generate a “affordable” IRR and MOIC, Singh, who has a purchase score and $33 worth goal on Evolent (EVH) added. At that worth, a PE store could generate an IRR of round 20% and MOIC of ~2.5x.
“However, a joint partnership involving a strategic purchaser resembling ELV and a PE agency might need flexibility to push the acquisition worth increased,” Singh wrote.
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Source: Seekingalpha