Acquisition enhances Convey’s leading Medicare Advantage supplemental benefit offering
Convey Health Solutions Holdings, Inc., a leading healthcare technology and services company, announced that it entered into a definitive agreement to acquire HealthSmart International (HealthSmart) for $77.5 million in cash. The transaction is subject to customary closing conditions, with up to $15 million of additional cash payable if HealthSmart achieves certain 2022 revenue targets. The acquisition of HealthSmart will further expand Convey’s mission to provide industry leading solutions and services that improve health plan operations and elevate the member experience. The parties expect to close the transaction during the first quarter of 2022.
HealthSmart’s health, wellness and diagnostic products centered on home-based care will accelerate Convey’s capabilities to improve health outcomes through innovative supplemental benefits. Convey intends to leverage HealthSmart’s product development and supply chain expertise to introduce additional products and technologies to enhance the health at home benefit for Medicare Advantage members.
HealthSmart will support Convey’s vision to empower health plans to excel by delivering a more diverse healthcare product portfolio to their members while streamlining logistics, resulting in a better healthcare consumer experience. The acquisition will combine Convey’s best-in-class supplemental benefits administration technology and services solution with HealthSmart’s market leading abilities as a trusted supplier of quality consumer healthcare products. Convey will extend the solutions serving the Medicare Advantage supplemental benefits business through a broader set of consumer healthcare products and expertise that serves many of the top health plans in the U.S. today.
“The acquisition of HealthSmart will significantly enhance our supplemental benefits healthcare offering, as we believe we are combining our best-in-class technology with a product portfolio to improve the lives of the health plan members that we serve,” said Stephen Farrell, CEO for Convey. “We know through our longitudinal study that members with chronic conditions see better health outcomes when they have access to high-quality products that allow them to live healthy and independent lives at home. Importantly, our strong cash flow and solid balance sheet will allow us to finance this transaction exclusively with debt and will be immediately accretive to shareholders upon closing of the transaction.”