EHealth, Inc. completed the acquisition of Health, Wealth and Life Advisors, LLC (‘GoMedigap’) from Qavah Ventures LLC and Richard Cantu.
January 22, 2018
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eHealth, Inc. (Nasdaq:EHTH) entered into a definitive agreement to acquire Health, Wealth and Life Advisors, LLC (‘GoMedigap’) from Qavah Ventures LLC and Richard Cantu for $20 million on January 16, 2018. The purchase consideration comprises $15 million of cash and approximately 294,637 shares of eHealth, subject to purchase price and escrow adjustments. $0.3 million of the cash consideration will be held in escrow at closing to cover potential obligations. GoMedigap membership interest holders have the potential to earn up to an additional $30 million, comprising approximately $20 million in cash and an aggregate of approximately 589,275 eHealth shares. The earn out consideration will become payable, subject to the terms and conditions of the purchase agreement, upon the final determination of the achievement of certain milestones in 2018 and 2019. eHealth expects to fund the purchase price through existing cash balances. GoMedigap's co-Chief Executive Officers will join the eHealth executive team and will continue to manage GoMedigap's Medicare Supplement business headquartered outside of Austin, Texas. The agreement is subject to customary closing conditions. eHealth expects the acquisition of GoMedigap to be accretive to the combined company's earnings. Randy Lewis, Esq. and John Keyes, Esq. from Wilson Sonsini Goodrich & Rosati served as legal advisors to eHealth. Kyle K. Fox from Greenberg Traurig LLP served as legal advisor to GoMedigap and the sellers.
eHealth, Inc. (Nasdaq:EHTH) completed the acquisition of Health, Wealth and Life Advisors, LLC (‘GoMedigap’) from Qavah Ventures LLC and Richard Cantu on January 22, 2018.
eHealth, Inc. is an independent licensed insurance agency and advisor. The Company provides a private online health insurance marketplace with a technology and service platform that provides consumer engagement, education, and health insurance enrollment solutions. Its segments include Medicare and Employer and Individual. It markets a large selection of Medicare-related health insurance plans and, to a lesser extent, ancillary products, such as dental and vision insurance and indemnity plans, to its Medicare-eligible consumers. Its Medicare e-commerce platform, which can be accessed through its Websites (www.eHealthMedicare.com, www.PlanPrescriber.com and www.GoMedigap.com), and telephonic enrollment capabilities enable consumers to research, compare and purchase Medicare-related health insurance plans. It markets individual and family health insurance plans (IFP) and small business health insurance plans through its e-commerce platform, which can be accessed through its Websites.
EHEALTH, INC. 
