Health Insurance Innovations Acquires Significant Distributor
18 Julho 2013 - 5:05PM
Health Insurance Innovations (Nasdaq:HIIQ) today announced the
acquisition of Secured Health and Life ("Secured"), a leading
health and life insurance marketer and an important distributor of
Health Insurance Innovations ("HII") products with a focus on
short-term medical plans, lead management systems, and cutting edge
call center technology.
"The acquisition of Secured is in line with our strategy to
expand captive distribution channels of HII's policies and to grow
and enhance the efficiency of our non-owned call centers,
wholesalers and licensed agent distributors," said Mike Kosloske,
President & CEO of HII.
This transaction is expected to produce a number of compelling
benefits:
- vertical integration with our largest distributor leading to
immediate incremental profits which are expected to grow rapidly
from approximately $3 million of earnings before tax attained by
Secured in 2012,
- reduced enterprise risk from enhanced control over the
Company's sales function,
- addition of sales lead management expertise to maximize the
number of new insurance policies produced by each dollar invested
in sales leads, and
- upside opportunities through technological and financial
synergies.
"This acquisition creates synergy with our transaction with Ivan
Spinner and TSG. Ivan Spinner will continue to introduce new call
centers to HII. These independent call centers will
enjoy lower lead costs and technology efficiencies from HII's
enhanced business platform. Secured's experienced management
will be a valuable addition to our expanding team by adding to our
sales automation, lead management and software development
capabilities," Mike continued. "HII remains committed
to growing organically. We continue to fully support
non-owned call centers and licensed brokers and provide advance
commissions as a means to assist in growing their core medical and
ancillary policy volume."
The Company believes these capabilities enhance its vertical
business model in several ways. HII's
long-standing relationships with best-in-class carriers allow it to
design innovative policies which are delivered through proprietary
technology platforms. This transaction strengthens
HII's captive, wholesale and licensed broker distribution and will
boost the efficiency of each sales channel through
empirically-driven, proprietary lead management.
"Secured and HII have had a long and prosperous relationship, we
are excited to be a part of the HII team and we are eager to
dramatically increase sales while developing new distribution
technology and lead management programs that will benefit HII and
their family of call centers as well as individual agents," said
Joseph Safina, CEO of Secured.
The aggregate purchase price for Secured is $16.5 million, with
$10 million paid in cash at closing and the remainder tied to
future business growth. More details will be
available in the Company's Form 8-K.
Mr. Kosloske added, "The favorable pricing of the transaction
will produce attractive near-term accretion and the deal structure
creates strong incentives for ongoing growth. With the
completion of this transaction, Health Insurance Innovations will
be in a stronger operational position and will realize the net
financial benefits in the near term."
About Health Insurance Innovations, Inc.
Health Insurance Innovations creates customizable and
affordable, high-quality health insurance products and supplemental
services through partnerships with best-in-class carriers. The
company utilizes its pioneering, next-generation cloud-based
technology platform to provide insurance agents with real-time
health insurance solutions, allowing them to tailor plans to fit
consumers' budgets and needs.
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.
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, we may encounter
difficulties related to the integration of businesses acquisitions,
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, competition, 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 Annual Report on Form 10-K 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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