October 1, 2021 – Walgreens Boots Alliance Inc. is considering an acquisition of Evolent Health Inc. (Arlington, VA), according to people familiar with the matter.
Walgreens has discussed a deal with Evolent, according to anonymous sources cited by Bloomberg.
Evolent runs a platform that helps providers manage costs and equips them to transition to a value-based care model. Evolent also works on behalf of health insurers to help get approvals, cut costs and provide guidance to doctors about the optimal way to treat patients, a business it expanded in 2018 with the acquisition of a specialty benefits company New Century Health, which focuses on oncology and cardiology.
According to Bloomberg, the acquisition would help Walgreens to diversify from its traditional retail pharmacy business by providing exposure to a technology-enabled platform and relationships with payers like commercial insurers and the government.
At closing on Wednesday, Evolent had a market value of about $2.5 billion.
Discussions are ongoing and there is no certainty that Walgreens will decide to move forward with an offer to buy the company, the sources said. Representatives for Walgreens and Evolent declined to comment.