05:07 AM EST, 12/24/2024 (MT Newswires) -- (Updates with the stock move in the headline and the first paragraph.)

NeueHealth's ( NEUE ) shares soared more than 60% in premarket activity on Tuesday after the company said overnight it agreed to be acquired and taken private by an affiliate of New Enterprise Associates for an enterprise value of about $1.3 billion.

Under the terms, shareholders of the healthcare company will receive $7.33 per share in cash, representing a premium of roughly 70% over the firm's closing stock price on Monday.

In a statement late Monday, NeueHealth ( NEUE ), previously known as Bright Health, said it changed its name in January.

The deal is subject to approval from regulators as well as from NeueHealth's ( NEUE ) shareholders. Certain NeueHealth ( NEUE ) stockholders agreed to vote all of their shares in favor of the transaction. Following completion, the company's stock will no longer be publicly traded.

NeueHealth's ( NEUE ) leadership team will continue in their roles once the deal is completed. The leadership team also intends to roll over 100% of their equity interests for newly issued equity interests in the privately held company.

The transaction also includes a 30-day "go-shop" period expiring Jan. 23, allowing the company to solicit and evaluate alternative acquisition proposals.