Acquisition Adds New Wellness Services,
Diversifies Revenue
Hooper Holmes (NYSE MKT: HH) has acquired the assets
representing the health and wellness business of Accountable Health
Solutions, Inc. (AHS). Accountable Health Solutions’ unaudited
financial statements reflect approximately $15 million in net sales
during calendar year 2014. The purchase price was $7.0 million
comprising $4 million cash and approximately $3 million in
unregistered common stock, subject to a working capital adjustment.
The acquisition is expected to be accretive to Hooper Holmes’
earnings in 2015. The Company will host a conference call on
Wednesday, April 22, 2015, at 7:30 a.m. CT / 8:30 a.m. ET to
discuss the acquisition of Accountable Health Solutions. The
details of the call are outlined in this press release and are also
available on the Investors section of Hooper Holmes’ webpage.
Accountable Health Solutions is a leading provider of health and
wellness solutions, serving more than 125 clients. Accountable
Health’s wellness portal services reach 385,000 members nationwide.
Combining Hooper’s biometric screening services and health
professional network with Accountable Health’s expert staff and
programs, including telephonic health coaching, wellness portals
and data analytics, is expected to have broad market appeal.
Henry Dubois, President and CEO of Hooper Holmes, commented:
“Accountable Health Solutions and Hooper Holmes are two
complementary companies focused on growth and market innovation.
Hooper’s national network of health professionals is a perfect
match for Accountable Health's scalable health coaching and portal
platforms and advanced analytical capabilities. Their focus on
employers with populations of 1,000 to 3,000 complements the larger
populations served by Hooper’s traditional wellness channel
partners, who may also become customers for certain AHS products.
This acquisition further advances our strategy to diversify our
revenue base, add scale, increase screening volumes, and more
efficiently utilize our health professional network. We also look
forward to leveraging Accountable Health’s technology and 20 years
of health and wellness experience to offer value-added
solutions.”
David Blair, CEO of Accountable Health, commented: “Accountable
Health Solutions and Hooper Holmes share a common DNA — a focus on
measurable results and a passion to improve the health and
well-being of those we serve. Integrating with Hooper’s national
health professional network, biometric screening capabilities and
strategic alliance with Clinical Reference Laboratory creates a
powerful end-to-end solution for improving health and well-being,
increasing productivity, and reducing costs for clients.”
Financing for the transaction is being provided by SWK Holdings
Corporation, a specialized finance company with a focus on the
global healthcare sector, through a $5 million, three-year, secured
term loan. The financing carries an annual interest rate of Libor
(1% floor) plus 14% (currently, approximately 15% in total) and a
warrant to purchase up to $3.75 million of common stock.
Brett Pope, CEO of SWK Holdings Corporation said, "We are
excited to partner with Hooper Holmes. The combined Company will be
well positioned with scale, vertical integration, and technology to
continue to bring innovative health and wellness solutions to
market."
Accountable Health Solutions will continue to be based in Des
Moines, IA and Indianapolis, IN. Hooper Holmes will continue to
conduct the AHS business using the Accountable Health Solutions
brand.
Cantor Fitzgerald & Co. is acting as the financial advisor
to Hooper Holmes.
Conference Call
The Company will host a conference call on Wednesday, April 22,
2015, at 7:30 a.m. CT / 8:30 a.m. ET to discuss the acquisition of
Accountable Health Solutions. A slide presentation accompanying
management’s discussion will be available on the Company’s
website.
To participate in the conference call, please dial 877-440-5807,
or internationally 719-325-4770, conference ID: 2260166 five to ten
minutes before the call is scheduled to begin. A live webcast will
be hosted on the Company’s website located at www.hooperholmes.com.
A replay of the conference call will be available from 11:30 a.m.
ET on April 22, 2015 until midnight ET on April 29, 2015, by
dialing 877-870-5176, or internationally 858-384-5517. The access
code for the replay is 2260166.
About Accountable Health
Solutions
Accountable Health Solutions was founded in 1992 as Molloy
Wellness Company and acquired by the Principal Financial Group in
2004, with ownership transferred to Accountable Health, Inc., and
whose name changed to Accountable Health Solutions in 2013.
Accountable Health Solutions offers comprehensive health and
wellness programs to employers and health plan clients. Accountable
Health combines smart technology, healthcare and behavior change
expertise to deliver solutions that improve health, increase
efficiencies and reduce costs in the delivery of healthcare. The
company’s product suite ranges from traditional wellness products
to health improvement programs. Accountable Health Solutions is an
industry leader with more than 20 years in the health and wellness
industry and a 97% client retention rate. More at
accountablehealthsolutions.com.
About Hooper Holmes
Hooper Holmes, Inc. mobilizes a national network of health
professionals to provide on-site health screenings, laboratory
testing, risk assessment and sample collection services to wellness
and disease management companies, insurance companies, employers,
government organizations and academic institutions. More
information is available at hooperholmes.com.
About SWK Holdings Corporation
SWK Holdings Corporation is a specialized finance company with a
focus on the global healthcare sector. SWK partners with ethical
product marketers and royalty holders to provide flexible financing
solutions at an attractive cost of capital to create long-term
value for both SWK’s business partners and its investors. SWK
believes its financing structures achieve an optimal partnership
for companies, institutions and inventors seeking capital for
expansion or capital and estate planning by allowing its partners
to monetize future cash flow with minimal dilution to their equity
stakes. Additional information on the life science finance market
is available on the Company’s website at www.swkhold.com.
This press release contains “forward-looking” statements; as
such term is defined in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are based on the
Company’s current expectations and beliefs and are subject to a
number of risks, uncertainties and assumptions. Among the important
factors that could cause actual results to differ materially from
those expressed in, or implied by, these forward-looking statements
are our ability to realize the expected benefits from this
acquisition and our strategic alliance with Clinical Reference
Laboratory; our ability to successfully implement our business
strategy and integrate Accountable Health Solutions’ business with
ours; our ability to retain and grow our customer base; our ability
to recognize operational efficiencies and reduce costs; uncertainty
as to our working capital requirements over the next 12 to 24
months; our ability to maintain compliance with the financial
covenant in our credit facility and the financing for this
acquisition; and the rate of growth in the Health and Wellness
market. Additional information about these and other factors that
could affect the Company’s business is set forth in the Company’s
annual report on Form 10-K for the year ended December 31, 2014,
filed with the Securities and Exchange Commission on March 31,
2015. The Company undertakes no obligation to update or release any
revisions to these forward-looking statements to reflect events or
circumstances after the date of this press release to reflect the
occurrence of unanticipated events, except as required by law.
Hooper HolmesHenry E. Dubois, 913-764-1045President and
CEOorInvestors:S.M. Berger & CompanyAndrew Berger,
216-464-6400