The transaction is expected to bring significant competitive advantages, merging HII's industry-leading health plan development, virtual-administration and agent distribution of affordable health insurance plans with HealthPocket's powerful big-data-aggregation technology. HealthPocket analyzes and aggregates the largest repository (of any kind) of health insurance information and uses it to power its consumer website, HealthPocket.com.
HealthPocket's game-changing technology, for the first time, provides free, one-click access for consumers to review on-and off-exchange individual major medical,
HealthPocket, a healthcare technology company founded in 2012 under the leadership of
"The incorporation of HealthPocket into
"Most Americans overpay for health insurance and the plans they choose often don't meet their unique needs. We founded HealthPocket to solve this national problem using new and highly scalable technology," stated
Strategic Benefits of the Transaction
•Strong Position and Competitive Advantage as Health Insurance Integrates HIT
Mandates of the Affordable Care Act (ACA) have accelerated consumers' adoption of the online research and purchase of their health insurance plans. The health insurance industry is merging with Health Information Technology (HIT) at an incredible pace. This acquisition elevates HII's strong position with consumers, insurance brokers and carriers in the new, big-data-driven marketplace including and beyond current (ACA) reforms.
•Highly Complementary Businesses With Unparalleled Consumer Solutions
The combined company is strongly positioned to capitalize on consumers' growing need for reliable information that is easily understood and access to flexible insurance coverage options.
"Aggregated comparison is what consumers want. Just look at what Amazon, Kayak, Edmunds and eBay have done by putting consumers in control and offering a vast amount of transparent options," said Kosloske. "Our research into adding this capability to our existing technology stack led us directly to HealthPocket, which is years ahead of the market. They know the industry from the inside-out and have built an unparalleled data and technology foundation that would take years to recreate. This was a key driver in this acquisition decision. HealthPocket is an ideal partner for continued growth and achieving our mission—to empower consumers with the latest technologies to research, purchase and manage their health insurance."
•Valuable In-House Lead Generation
Most health insurance industry call-center distribution is dependent upon leads purchased from a few large industry sources. This acquisition will provide HII and our distribution with an ongoing, owned source of referrals from consumers who have explicitly asked for a consultation after having the opportunity to consider all plan options based on their personal needs. These leads have higher than average close ratios and will allow HII to capture both lead sales and manufacturing profits.
•Big Data-Driven Insights to Enter New Markets and Expand in Others
The acquisition of HealthPocket allows HII expedited entry into the large
"We now have the ability to gain insights into the market that no individual carrier or online health insurance marketplace can. No one else has both the insights and the capability to transact business based on geography, demographics, psychographics and price points across multiple types of plans. We've proven that we know how to use those data points to create products distributors and consumers love—our top-line growth reflects this," said Kosloske.
•Bolstering a Leadership Team for Strategic Growth
Pursuant to the Agreement and Plan of Merger executed by the parties, the aggregate merger consideration paid by HII was approximately
HII will host a conference call and webcast on
The recorded webcast of the conference call will be available at HII's website investor.hiiquote.com/events.cfm.
This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical fact, and may include statements relating to goals, plans and projections regarding new markets, products, services, growth strategies, anticipated trends in our business and anticipated changes and developments in
Forward-looking statements are based on the Company's current assumptions, expectations and belief are generally identifiable by use of words "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue," or similar expressions and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements. These risks and uncertainties include, among other things, our ability to maintain relationships and develop new relationships with health insurance carriers and distributors, our ability to retain our members, the demand for our products, the amount of commissions paid to us or changes in health insurance plan pricing practices, competition, changes and developments in
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. You should not rely on any forward-looking statement as representing our views in the future. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
CONTACT: For more information, please contact:
Health Insurance Innovations, Inc.: Mike HershbergerSenior VP of Business Development (877) 376 5831 ext. 313 email@example.com Investor Contact: Susan Noonan S.A. Noonan Communications, LLC(212) 966 3650 firstname.lastname@example.org Media Contact: Kevin Pchola Zeno Group(212) 299-8950 email@example.com