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February 1, 2021

H.I.G. Capital to invest $225m in health insurance marketplace eHealth

By Verdict Staff

An affiliate of global alternative investment firm H.I.G. Capital has signed a binding agreement to invest $225m in eHealth, which owns and operates a private online health insurance exchange.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

Under the agreement, the H.I.G. affiliate will make the investment by buying convertible preferred stock.

The company plans to use the new capital to fuel its organic growth and capitalise on inorganic growth opportunities, as well as deliver meaningful returns to shareholders.

With the fresh infusion, the company also intends to expedite the rollout of its strategic initiatives. These include plans to drive scale through online enrolment growth, investing in the in-house telesales team, expansion of its strategic partner channel, and increasing member engagement and retention.

eHealth CEO Scott Flanders said: “With this investment, we will take immediate steps to build on our strong foundation and fast-track our strategic plans. We are operating with focus and urgency to leverage the new capabilities we introduced in 2020 and create a more profitable and scalable model, while continuing to transition our member acquisition and engagement strategy towards improved retention and lifetime value.”

As part of the investment, H.I.G. managing director Aaron Tolson will be nominated for appointment as a director to the eHealth board of Directors.

Tolson said: “The work Scott, the eHealth Board and its management team are doing has never been more important. Strategically, eHealth is making great strides in its efforts to move customers online and enhance retention while lowering acquisition costs.

“We believe eHealth is ready to win and capture the significant upside as the shift to online intensifies – and we are excited to partner with the Company to help drive that user and revenue growth.”

The transaction is expected to be finalised in the first quarter of this year. Upon completion, the convertible preferred stock issued to H.I.G. will represent around 8% of eHealth’s common stock on an as-converted basis.

In July 2019, eHealth established a new office in Indiana, to act as the company’s Eastern Time Zone operations and technology headquarters.

In 2018, the company agreed to acquire Health, Wealth, and Life Advisors, more commonly known as GoMedigap, in a cash and stock deal worth $20m.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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