iCan Benefits Group is engaged in selling insurance directly to consumers across all the 50 US states
Quad M Solutions, a US staffing solutions provider, has agreed to acquire Florida-based health insurance broker iCan Benefits Group.
As per the terms of the all-stock deal, Quad M Solutions will issue 4% of its shares to the broker besides injecting $17.5m to pay off its debt before the closing of the deal by 29 September 2020.
iCan Benefits Group is engaged in selling insurance directly to consumers across all the 50 US states. The health insurance broker is said to work with a range of providers so that the consumer gets the most affordable plan with a maximum potential to address their client’s requirements.
Founded in 2005, iCan Benefits Group is claimed to have sold close to a million insurance contracts alongside various insurance products like short-term medical insurance indemnity, homeowners, property insurance, and also other medical-related insurance products.
According to Quad M Solutions, the broker’s client database is invaluable and is seen as a prime asset in enabling the combined firm to cross sell its staffing solutions and major medical, group products to independent contractors, freelancers, and gig economy workers.
iCan Benefits Group CEO Stephen Tucker will become the chief revenue officer of the enlarged Quad M Solutions post completion of the acquisition.
Quad M Solutions CEO Pat Dileo said: “Steve’s execution capabilities are unparalleled. We believe that he will be able to cross sell our staffing solution that provides the lowest cost major medical insurance coverage in the country.
“His database combined with his salesmanship could provide in excess of 100,000 lives over the next several years at an estimated average price of $1,000/per life per month, making the revenue substantial.”
During the last several years, iCan Benefits Group is said to have generated over $4.5m of operating earnings on approximately $37m of premium revenue.
iCan Benefits Group CEO comments on the deal
Stephen Tucker said: “Quad M’s staffing solution enables companies that utilize independent contractors the ability to provide group medical insurance utilizing pre-tax dollars to individuals who have their own business.
“Combined with our focus on indemnity policies and other insurance policies that supplement what an individual who has their own business needs, we believe that iCan will continue to be among the fastest growing insurance marketing companies in the U.S.”