06:33 AM EST, 12/24/2024 (MT Newswires) -- NeueHealth ( NEUE ) shares soared early Tuesday as the healthcare company agreed to be acquired and taken private by an affiliate of New Enterprise Associates in a deal worth roughly $1.3 billion.

Shareholders of NeueHealth ( NEUE ) will receive $7.33 per share in cash, reflecting a premium of about 70% to the firm's closing stock price on Monday. Some of the company's shareholders entered rollover agreements to exchange their stock for newly issued equity interests in the privately held company.

NeueHealth's ( NEUE ) stock surged 59% in premarket activity.

"We are pleased to announce this transaction as we believe it places NeueHealth ( NEUE ) in a strong position for continued growth while maximizing value for all of NeueHealth's ( NEUE ) public stockholders," Chief Executive Mike Mikan said in a late Monday statement. The company's executive leadership team will continue in their roles once the deal is completed.

The deal requires clearance from regulators and approval from NeueHealth's ( NEUE ) shareholders. Certain investors of the company agreed to vote all of their shares in favor of the transaction. The deal also includes a 30-day "go-shop" period expiring Jan. 23 to allow the company to solicit and evaluate alternative acquisition proposals.

NeueHealth ( NEUE ), which was previously known as Bright Health, changed its name in January as it looked to focus on its consumer-centric care model. The company will no longer trade publicly once the deal closes.

"We believe NeueHealth ( NEUE ) has built a differentiated model of care that is uniquely positioned to drive value for consumers, providers and payors and we have confidence in the NeueHealth ( NEUE ) team and their ability to continue to lead the company," New Enterprise Associates co-CEO Mohamad Makhzoumi said. The venture capital firm plans to fund the deal with fully committed equity financing.

Last month, NeueHealth ( NEUE ) reported third-quarter revenue of $232.9 million, down from $269.4 million a year ago. At the time, the company said it expected its revenue to come in at about $950 million in 2024.