eHealth, Inc. and an affiliate of H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm, have entered into a binding agreement to make a $225 million investment in the Company by purchasing convertible preferred stock.
Having a strengthened financial situation, eHealth hopes to drive organic growth, improve its capacity to capitalize on inorganic growth opportunities, and provide significant returns to investors. The additional funds will accelerate the implementation of eHealth’s strategic efforts, such as driving scale through internet registration development, investing in the business’s in-house telesales group, broadening its strategic partner station, and forcing towards improved member retention and engagement.
Approvals, Time to Immediately and Investment Construction
Upon completion of the investment, the convertible preferred stock issued to H.I.G. will represent roughly 8% of the firm’s common stock in an as-converted foundation (subject to adjustment in certain events). Please consult with the organization’s 8-K for extra transaction conditions.