eHealth Announces Strategic Investment from H.I.G. Capital
With a strengthened financial position, eHealth expects to drive organic growth, enhance its ability to capitalize on inorganic growth opportunities, and deliver meaningful returns to shareholders. The additional capital will accelerate the execution of eHealth's strategic initiatives, including driving scale through online enrollment growth, investing in the Company's in-house telesales team, broadening its strategic partner channel, and driving towards increased member engagement and retention.
"Today's announcement is an important validation from a blue-chip investor of our differentiated business model. We are excited to partner with H.I.G., as we grow scale and market share by helping millions of Americans shop, compare, and manage their health insurance," said
In connection with this investment,
Flanders added, "On behalf of our Board, we look forward to benefiting from Aaron's valuable expertise in helping companies successfully leverage technology to disrupt their respective sectors, his analytical and disciplined approach as well as his entrepreneurial background as a software company co-founder. We are committed to advancing our important mission, determined to create a stronger and more resilient company poised for long-term value creation and confident this agreement is in the best interests of eHealth and its stakeholders as we work to do so."
"We have long respected eHealth for its best-in-class technology and proven track record of growth," said
Approvals, Timing to Closing and Investment Structure
The parties expect to close the transaction in the first quarter of 2021, subject to the negotiation and execution of definitive documents, receipt of certain regulatory approvals and the satisfaction of other customary closing conditions. Upon completion of the investment, the convertible preferred stock issued to H.I.G. will represent approximately 8 percent of the Company's common stock on an as-converted basis (subject to adjustment in certain events). Please refer to the Company's 8-K for additional transaction terms.
Preliminary Financial Results
In a separate release today, the Company announced its preliminary, unaudited financial results and select operating metrics for the fourth quarter and fiscal year ended
H.I.G. is a leading global private equity and alternative assets investment firm with
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These include statements regarding the proposed investment from H.I.G., including whether and when the investment will close, the terms of the investment, the ownership and voting power of H.I.G. following the investment, the addition of a director to our board of directors, and the expected impacts of the investment on our business, including future returns to shareholders.
These forward-looking statements are inherently subject to various risks and uncertainties that could cause actual results to differ materially from the statements made.
The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include the risk that the parties cannot reach agreement on the terms of the definitive documents relating to the investment, the risk that the conditions to closing are not met, or that even if they are met the transaction does not close.
Other factors that could cause operating, financial and other results to differ are described in eHealth's most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K filed with the
All forward-looking statements in this press release are based on information available to eHealth as of the date hereof, and eHealth does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.
Investor Relations Contact
Vice President, Investor Relations
View original content to download multimedia:http://www.prnewswire.com/news-releases/ehealth-announces-strategic-investment-from-hig-capital-301218125.html