Health Insurance Innovations (HIIQ) has purchased Secured Health and Life, a health and life insurance vendor and a distributor of HII products.
Based on the terms of the transactions, the acquirer will pay a purchase price of $16.5m, out of which $10m will be paid in cash at deal closing and the remainder payment will be based on future business development.
The acquisition will boost HII’s growth capability, while reducing the enterprise risk from enhanced control over the company’s sales function,
HII president & CEO Mike Kosloske said, "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."
The acquirer said that the transaction will boost its captive, wholesale and licensed broker distribution capabilities and will strengthen the efficiency of each sales channel through empirically driven, lead management.
The deal will provide vertical integration with its distributor, subsequently increasing profits from nearly $3m of earnings before tax posted by Secured in 2012.
It will also provide sales lead management expertise to maximize the number of new insurance policies produced by each dollar invested in sales leads, and better opportunities through technological and financial synergies.
HII produces tailored and affordable, quality health insurance products and supplemental services by teaming up with various insurance carriers to fit consumers’ budgets and needs.