Health Insurance Innovations (NASDAQ:HIIQ) has acquired TogetherHealth, a direct-to-consumer platform aimed at the “over 65” insurance market.
Under the terms of the deal, HIIQ paid ~$50M in cash plus 630K shares of Class A common stock. It also included a five-year earnout provision.
The transaction will add at least $10M to HIIQ’s 2019 non-GAAP EBITDA.
Updated 2019 guidance: revenues: $450M – 460M from $430M – 440M; non-GAAP EBITDA: $82M – 87M from $72M – 77M; non-GAAP EPS: $3.80 – 4.05 from $3.50 – 3.75.
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The company has established a new $215M credit facility that includes a $150M term loan and a $65M revolver. The term loan will fund the refinancing of $65M of existing debt and the cash portion of the transaction.
Management will host a conference call this morning at 9:00 am ET to discuss the deal.
Shares are up 6% premarket on light volume.
Date: June 10, 2019
Source: AwesomeCapital
