Why Evolent Health Stock Crept Higher Today
In contrast to the slight dip of the S&P 500 index on Wednesday, Evolent Health (NYSE: EVH) stock edged higher. That reflected the cautiously optimistic reaction of investors to the specialty healthcare company's news of a fresh acquisition.
Wednesday morning, Evolent Health announced it has entered into a definitive agreement to purchase IPG for a base price of $375 million from its owner TPG Growth, a unit of alternative asset company TPG. IPG will also be eligible for up to $87 million more if it meets certain performance milestones.
Evolent Health said it expects to fund $250 million of the upfront price in cash, with the remainder to be paid in newly issued stock. Of that $250 million, $25 million is to come from cash on hand and the rest from a credit facility with a five-year term.
Source Fool.com