HealthCare.com, a health insurance and medicare comparision platform, has acquired insurtech startup Pivot Health in an all-cash transaction, according to a Feb. 21 press release.
Headquartered in Phoenix, Pivot Health develops, manages and markets proprietary, specialty health insurance products for individuals, including short-term medical, fixed indemnity and supplemental gap coverage. Pivot Health is backed by Bermuda-based re/insurer Axis Capital with more than $20.8 billion in assets, according to the company website.
Following the transaction, Pivot Health will continue to operate independently. The company was founded by Jeff Smedsrud, who was also the co-founder and CEO of HealthCare.com from 2014 to 2016, and previously sold four insurance marketing businesses to publicly-traded companies. Smedsrud will continue to lead Pivot Health on a day-to-day basis and will join the HealthCare.com management team.
"The acquisition of Pivot Health broadens our consumer offering and fits within HealthCare.com's mission to help healthcare consumers find affordable coverage and make informed healthcare purchase decisions," said Howard Yeh, co-founder and CEO of HealthCare.com.
Jose Vargas, co-founder and director of HealthCare.com, added: "From a strategic standpoint, the acquisition brings together HealthCare.com's leading health insurance and Medicare comparison model with Pivot Health direct-to-consumer and proprietary specialty insurance products. It also combines two amazing and experienced teams. Our HealthCare.com comparison business generates value to consumers and insurance companies. Now with Pivot Health we are able to build a closer relationship with consumers by offering insurance products that meet their individual needs."
Smedsrud commented: "Our combination with HealthCare.com brings substantial momentum and the right resources to serve consumers with the information they want, the comparisons they desire and products they need, all enabled by technology that makes enrollment faster and easier."
HealthCare.com, Pivot Health, M&A, Merger and aquisition, Jeff Smedsrud, Jose Vargas, US