Health Insurance Innovations, Inc., Announces Acquisition of Contract Rights From TSG Agency, LLC
14 Março 2013 - 8:00AM
Health Insurance Innovations, Inc. ("HII" or the "Company")
(Nasdaq:HIIQ), today announced the purchase of its contract rights
with TSG Agency, LLC. ("TSG") and certain other assets for an
aggregate cash purchase price of $5.5 million. HII expects to incur
approximately $0.3 million of costs related to the transaction.
Ivan Spinner, founder and owner of TSG Agency, LLC, a managing
general agent of HII, will join HII as an employee.
"This is an important milestone for HII as we expand our team
and capabilities," said Michael Kosloske, president and chief
executive officer of HII. "Aligned with HII's customer-focused
objectives, TSG represents a carefully selected group of
financially strong, reputable insurance companies, bringing its
clients the best coverage at the most competitive price. Ivan
Spinner brings a wealth of experience to HII for the recruitment of
new and experienced agents with the skills and knowledge to produce
health, life and annuities online."
Due to the structure of the transaction, the full amount will be
expensed in the first quarter of 2013 under generally accepted
accounting principles, which HII believes will result in a net loss
for the quarter. HII expects the transaction to reduce third
party commissions otherwise payable to TSG on a quarterly basis
beginning in the second quarter of 2013 and forward, which will
result in positive bottom line impact.
About TSG Agency, LLC
TSG Insurance Agency is an independent agent free to choose the
best carrier for its customers' insurance needs. TSG provides
agents and consumers top rated health and life carriers across the
U.S. TSG will also provide a number of other key products for the
agents to be successful such as dental, RX, limited medical plans,
short term medical, travel insurance and Critical Illness coverage
to fit all of its customers' needs. Additional information about
TSG can be found at www.tsgagency.com.
About Health Insurance Innovations, Inc.
Headquartered in Tampa, Florida, Health Insurance Innovations,
Inc. is a leading developer and administrator of
affordable, cloud-based, individual health insurance plans and
ancillary products. We are an industry leader in the sale of
12-month short-term medical insurance plans, which provide an
economical alternative to Individual Major Medical plans, while
offering similar benefits. Our highly- scalable,
proprietary, cloud-based technology platform allows for mass
distribution of and online enrollment in our large and diverse
portfolio of affordable health insurance offerings, providing
customers immediate access to our products through our distribution
partners. Anywhere. Anytime. Additional information about HII
can be found at www.hiiquote.com. The reference to our website is
not intended to incorporate our website into this press
release.
The Health Insurance Innovations logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=17247
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements are statements other than
historical fact, and may include statements relating to goals,
plans and projections regarding new markets, products, services,
growth strategies, anticipated trends in our business and
anticipated changes and developments in the United States health
insurance system and laws. Forward-looking statements are based on
management's current expectations and beliefs and involve
significant risks and uncertainties that could cause actual
results, developments and business decisions to differ materially
from those contemplated by these statements. These risks and
uncertainties include, among other things, our ability to maintain
relationships and develop new relationships with health insurance
carriers and distributors, our ability to retain our members, the
demand for our products, the amount of commissions paid to us or
changes in health insurance plan pricing practices, changes and
developments in the United States health insurance system and
laws, the ability to maintain and enhance our name recognition and
our ability to build the necessary infrastructure and processes to
maintain effective controls over financial reporting. These and
other risk factors that could cause actual results to differ
materially from those expressed or implied in our forward-looking
statements are and will be discussed in HII's most recent S-1/A
filed with the Securities and Exchange Commission as well as other
documents that may be filed by HII from time to time with the
Securities and Exchange Commission.
Any forward-looking statement made by us in this press release
is based only on information currently available to us and speaks
only as of the date on which it is made. You should not rely on the
statement as representing our views in the future. We undertake no
obligation to publicly update any forward-looking statement,
whether written or oral, that may be made from time to time,
whether as a result of new information, future developments or
otherwise.
CONTACT: Health Insurance Innovations, Inc.:
Michael Hershberger
Chief Financial Officer
(877) 376 5831 ext.313
mhershberger@hiiquote.com
Investor Contact:
Susan Noonan
S.A. Noonan Communications, LLC
(212) 966 3650
susan@sanoonan.com
Media Contact:
Andreas Marathovouniotis
Russo Partners, LLC
(212) 845-4235
andreas.marathis@russopartnersllc.com
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