NeueHealth Stock Soars Toward 9-Month Highs On $1.3B Take-Private Deal: Retail Exuberant

Shares of NeueHealth Inc. skyrocketed over 64% in premarket trading Tuesday, heading toward highs last seen in March, following the announcement of a $1.3 billion take-private deal by an affiliate of New Enterprise Associates (NEA).

Under the agreement, NeueHealth shareholders will receive $7.33 per share in cash, representing a 70% premium to the stock’s closing price on Monday. 

The transaction values the company at approximately $1.3 billion on an enterprise basis.

NeueHealth’s executive team will retain their roles and roll over their equity interests into the privately held entity. 

President and CEO Mike Mikan said, “We are pleased to announce this transaction as we believe it places NeueHealth in a strong position for continued growth while maximizing value for all of NeueHealth's public stockholders.”

NEA’s Co-CEO Mohamad Makhzoumi praised NeueHealth’s differentiated care model, citing its ability to create value for consumers, providers, and payors. 

NEA has been a strategic partner of NeueHealth since 2016, according to the company.

NeueHealth operates across the Bright HealthCare and NeueHealth segments, focusing on value-based care through Medicare Advantage and individual and family health plans.

NEUE sentiment and message volume Dec 24 premarket as of 9:10 am ET | source: Stocktwits

On Stocktwits, sentiment turned ‘extremely bullish,’ with message volume hitting its highest level of the year. 

NeueHealth shares are down over 41% year-to-date.

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