NeueHealth officially ceased trading on the New York Stock Exchange after completing its go-private deal with an affiliate of New Enterprise Associates.
The company, once known as Bright Health Group, was scooped up on Thursday by the NEA unit with an enterprise value of about $1.5 billion, following a series of financial struggles. Common stockholders in NeueHealth will receive $7.33 per share as part of the sale, according to an announcement.
Certain shareholders in the company—including New Enterprise Associates and 12 other investors who hold all of its preferred stock—will instead enter into a rollover agreement, where they will exchange shares for equity interest in the now-private enterprise.
In addition, NeueHealth's leadership will continue in their roles and have similarly rolled their holdings into equity in the private company.
“Since our founding, NeueHealth has been committed to aligning the interests of consumers, payors, and providers to create a seamless, more coordinated care experience for all,” President and CEO Mike Mikan said in the announcement. “This transaction marks a significant milestone for our Company as it allows us the flexibility and resources to continue to fulfill this mission as we advance our value-driven, consumer-centric care model and drive long-term, sustainable growth into the future.”
NeueHealth will make necessary filings with the Securities and Exchange Commission to suspend its quarterly reporting and other obligations, according to the press release.
The company raised nearly a billion dollars when it went public in June 2021, but since then, it has seen a roller coaster of financial challenges that led it to the NEA sale. This included selling its Medicare Advantage plans to Molina Healthcare at the end of 2023, shifting its focus to its value-based care business, and subsequently leading its rebranding as NeueHealth in 2024.
New Enterprise Associates already owned 60% of the company when the sale was announced in January.