Press release
eHealth Announces Strategic Investment from H.I.G. Capital
H.I.G. Capital Commits to a $225 Million Investment to Accelerate Growth SANTA CLARA, Calif., Jan. 29, 2021 /PRNewswire/ -- eHealth, Inc. (NASDAQ: EHTH)
About this update from Ehealth, Inc.
[{"type":"text","content":"H.I.G. Capital Commits to a $225 Million Investment to Accelerate Growth\n\n\nSANTA CLARA, Calif., Jan. 29, 2021 /PRNewswire/ -- eHealth, Inc. (NASDAQ: EHTH) (\"eHealth\" or the \"Company\") today announced that an affiliate of H.I.G. Capital (\"H.I.G.\"), a leading global alternative investment firm, has entered into a binding agreement to make a $225 million investment in the Company by purchasing convertible preferred stock. \nWith a strengthened financial position, eHealth expects to drive organic growth, enhance its ability to capitalize on inorganic growth opportunities, and deliver meaningful returns to shareholders. The additional capital will accelerate the execution of eHealth's strategic initiatives, including driving scale through online enrollment growth, investing in the Company's in-house telesales team, broadening its strategic partner channel, and driving towards increased member engagement and retention. \n\"Today's announcement is an important validation from a blue-chip investor of our differentiated business model. We are excited to partner with H.I.G., as we grow scale and market share by helping millions of Americans shop, compare, and manage their health insurance,\" said Scott Flanders, Chief Executive Officer of eHealth. \"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.\"\nIn connection with this investment, Aaron Tolson, Managing Director of H.I.G., will be nominated for appointment as a director to the eHealth Board of Directors upon closing of the transaction. Mr. Tolson has over 20 years of financial and leadership experience, assisting companies in delivering transformative growth. With Mr. Tolson's appointment, the eHealth Board will consist of 8 members. Further information on Aaron's experience can be found below.\nFlanders added, \"On behalf of our Board, we look forward to benefiting from Aaron's valuable expertise in helping companies successfully leverage technology to disrupt their respective sectors, his analytical and disciplined approach as well as his...