Business
GoHealth Closes Acquisition of e-TeleQuote
Acquisition Contributes Over $100 Million in Contract Assets plus $18 Million in Cash to Balance Sheet, and Expands Agent Capacity with a $5 Million
About this update from Gohealth, Inc.
[{"type":"text","content":"Acquisition Contributes Over $100 Million in Contract Assets plus $18 Million in Cash to Balance Sheet, and Expands Agent Capacity with a $5 Million Investment ahead of busy enrollment season CHICAGO and CLEARWATER, Fla., Oct. 01, 2024 (GLOBE NEWSWIRE) -- GoHealth, Inc. (Nasdaq: GOCO), a leading health insurance marketplace, today announced that it had closed the previously announced pending acquisition of e-TeleQuote Insurance, Inc., a distinguished name in the Medicare insurance marketplace. The transaction closed on September 30, 2024, as anticipated, leaving GoHealth as the sole owner of e-TeleQuote. Transaction Details GoHealth was selected through a competitive process and entered into a purchase and subscription agreement on August 30, 2024, to acquire an 18.9% stake in e-TeleQuote. On September 30, 2024, GoHealth completed the purchase by investing $5 million for newly issued shares in e-TeleQuote. Concurrently, e-TeleQuote's previous owner relinquished its 81.1% ownership interest thereby relinquishing its rights in the company. As a result, GoHealth became the sole owner of e-TeleQuote, including all its assets, inclusive of the $5 million paid to e-TeleQuote at the time of the transaction closing. GoHealth’s unique external agent channel allowed for a \"plug and play,\" seamless transition and operational integration, which made the condensed 30-day transaction close possible. In addition to over $18 million in cash on the e-TeleQuote balance sheet, e-TeleQuote holds a substantial contract asset valued at over $100 million, tied to its Medicare Advantage business. Furthermore, GoHealth believes e-TeleQuote brings significant value to GoHealth with its experienced management team and a workforce of nearly 400 licensed agents. “We believe the upcoming AEP will present unique industry and market dynamics, including a reduction in marketing capacity across the broker industry, combined with strong demand for Medicare Advantage shopping and appropriate switching. In this highly attractive marketplace, success hinges on effectively managing customer acquisition costs—an industry leading capability for GoHealth. With e-TeleQuote's agent capacity now accessible without the usual cash outlay for hiring and training, we believe GoHealth is well-positioned to continue delivering as a leading source of high-quality enrollments fo...