Precis Announces Intent to Acquire Insurance Sales and Marketing Organization
June 13 2006 - 8:30AM
PR Newswire (US)
GRAND PRAIRIE, Texas, June 13 /PRNewswire-FirstCall/ -- Precis Inc.
(NASDAQ:PCIS) announced today that it has entered into a
non-binding letter of intent to acquire Insuraco USA, L.L.C., a
Fort Worth, Texas company providing web-based technology, specialty
products and marketing for the insurance and financial services
industry. Precis Inc. is a provider of access to affordable
healthcare services to the ever growing number of uninsured and/or
underinsured in the United States. It is estimated that over 45
million Americans are currently without healthcare coverage.
Insuraco is a wholly-owned subsidiary of Insurance Capital
Management, Inc. ("ICM") and specializes in selling major medical
individual health insurance and specialty medical and benefit plans
for affinity groups, associations, employers and other groups.
Insuraco commenced operations in 2004. Peter W. Nauert, the founder
and Chief Executive Officer of ICM and Insuraco, would be named
Chief Executive Officer of Precis at the close of the transaction.
Prior to founding ICM, Mr. Nauert served as Chief Executive Officer
of Ceres Group, Inc., QQLink, and Pioneer Financial Services, Inc.
The closing of the transaction is contingent on completion of due
diligence, approval by Precis' shareholders, and other matters. "We
are excited about the opportunity of this transaction and the
accretive profit contribution that we anticipate it will bring to
our shareholders," said Nicholas J. Zaffiris, the Chairman of the
Board for Precis. "Insuraco would bring to Precis a portfolio of
proprietary products, benefit programs, and benefit enhancement
programs to complement and create cross-selling opportunities for
Precis' consumer medical discount products and managed care
services." Mr. Zaffiris continued, "We are also delighted about
Peter Nauert joining Precis. His experience in successfully
operating and growing insurance marketing companies, as well as his
expertise in mergers and acquisitions, capital formation and
administration would be of assistance to us as we build value for
our shareholders. He is a widely acknowledged insurance industry
leader with extensive product and market knowledge." Mr. Nauert
stated, "This provides an exceptional and timely opportunity for
both Precis and Insuraco. Senior Insuraco staff will also be
joining this combined team with Precis. Together, we intend to
continue to grow our distribution channels and create
differentiated consumer products to stay abreast of a rapidly
changing market. "Since the initiation of Insuraco and ICM, we have
been successful in developing niche markets for insurance and
specialty products. Now, by joining with Precis, there will be
opportunity to create shareholder value by accelerating sales and
earnings growth through the current marketing channels and by
accessing the capital markets to pursue strategic acquisition
opportunities," he added. "Insuraco brings strong distribution and
product development capabilities, along with an electronic sales
platform. We will utilize these skills and expertise to build on
the strong brand recognition of the Precis Care Entree program and
to expand its defined benefit and insurance programs throughout the
United States. In addition, Precis' Access HealthSource division
has an excellent consumer-based managed health care operation in
Southwest Texas that embraces a growing market area. I believe that
we can build on the existing Access platform and expand these
services in other markets. I believe Access represents a tremendous
growth opportunity," Nauert concluded. In order to accommodate the
schedule of the transaction and address all matters requiring
action by its shareholders at one meeting, the annual meeting of
Precis shareholders normally occurring in July will be held in late
October 2006. About Precis, Inc. Precis, Inc. and its subsidiaries
provide affordable consumer-driven health care solutions as
alternatives to traditional health insurance. The companies market
non-insurance health care savings programs, administer tax-favored
reimbursement accounts, and offer third party claims
administration, provider network management, and utilization
management services for employer groups that utilize partially self
funded strategies to finance their employee benefit programs. For
more information on Precis, its subsidiaries Access Administrators
and Care 125, visit http://www.precis-pcis.com/,
http://www.accesshealthsource.com/ and http://www.care125.com/,
respectively. About Insuraco Insurance Capital Management, Inc.
(ICM) and Insuraco USA, L.L.C. provide web-based technology,
specialty products and marketing for insurance and financial
services. ICM's team of sales, marketing and technology
professionals enable insurance, healthcare and financial service
companies to improve their product distribution and marketing. ICM
utilizes web-based technology, its nationwide agent distribution
and direct call center programs to provide superior customer and
marketing support. For more information, go to
http://www.icmusa.com/. Disclaimer Certain statements included in
this news release constitute "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended. Certain, but not necessarily all, of such forward-looking
statements can be identified by the use of forward-looking
terminology such as "anticipate," "believes," "expects," "may,"
"will," or "should," or other variations thereon, by discussions of
strategies that involve risks and uncertainties. Precis Inc.'s
actual results or industry results may be materially different from
any future results expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially include general economic and business conditions; Precis
Inc.'s ability to implement its business strategies; competition;
availability of key personnel; increasing operating costs;
unsuccessful promotional efforts; changes in brand awareness;
acceptance of new product offerings; retention of members and
independent marketing representatives; and changes in, or the
failure to comply with, government regulations. Precis, Inc.
undertakes no obligation to update any forward-looking statements
or to make any other forward-looking statement, whether as a result
of new information, future events, or otherwise. Contact: Frank
Apodaca Joe Diaz President Lytham Partners, LLC Precis, Inc.
602-889-9660 915-581-8182 Bob Bintliff Nancy Zalud Chief Financial
Officer Senior Vice President Precis, Inc. Insurance Capital
Management 972-343-6501 817-820-2125 DATASOURCE: Precis, Inc.
CONTACT: Frank Apodaca, President, +1-915-581-8182, or Bob
Bintliff, Chief Financial Officer, +1-972-343-6501, both of Precis,
Inc.; or Joe Diaz of Lytham Partners, LLC, +1-602-889-9660, for
Precis, Inc.; or Nancy Zalud, Senior Vice President of Insurance
Capital Management, +1-817-820-2125 Web site:
http://www.precis-pcis.com/ http://www.accesshealthsource.com/
http://www.care125.com/ http://www.icmusa.com/
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