- eHealth (NASDAQ:EHTH) announces that an affiliate of H.I.G. Capital has entered into a binding agreement to make a $225M investment in the company by purchasing convertible preferred stock.
- With the help of the investment, eHealth hopes to accelerate the execution of its strategic initiatives, including driving scale through online enrollment growth and broadening its strategic partner channel among other things.
- Upon completion of the investment, which both companies expect to be in Q1 2021, the convertible preferred stock issued to H.I.G. will represent about 8% of eHealth's common stock.
- Moelis & Company LLC is serving as sole placement agent and financial advisor to eHealth and Wilson Sonsini Goodrich & Rosati, Professional Corporation as legal advisor. Ropes & Gray LLP is serving as legal advisor to H.I.G.
- eHealth shares down nearly ~17% premarket.
- Seeking Alpha contributor DeepValuePlay last month issued a bullish take on the stock.