Evolent's Love Triangle: Private Equity Fighters and a Flirtatious Health Insurer Compete for Affection

So, Evolent, a software provider based in Arlington, Virginia, is looking to get acquired after receiving a bunch of takeover inquiries. Some big players in the mix include private equity firms like TPG Inc, Clayton, Dubilier & Rice, and KKR & Co. Oh, and guess what? TPG was actually one of Evolent's early investors, fancy that!

But wait, there's more! Health insurer, Elevance Health Inc, is also interested in joining the party. They might team up with a private equity partner to make a bid for Evolent. Exciting stuff.

Now, Evolent has been around since 2011 and they specialize in software solutions that help healthcare providers and insurers switch from the old fee-for-service model to those value-based care models that are all the rage. They've got some pretty cool partnerships, too, like with the big player, Humana Inc.

But it hasn't been all smooth sailing for Evolent. Despite a 38% revenue increase in their latest quarter, they've been struggling with lower billing rates from payer customers, which has led to below-market results. Not ideal, I know.

This isn't the first time Evolent has caught the eye of potential buyers, either. There were reports that

Walgreens Boots Alliance considered a deal with them in 2021. Plus, activist investor Engaged Capital got involved last year, trying to shake things up and boost shareholder value.

Let's see how this auction process plays out and whether Evolent will find its soulmate in a new owner. It's definitely something to keep an eye on!

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