Health Insurance Innovations acquires HealthPocket

Cloud-enabled Health Insurance Innovations, a Tampa, Fla.,-based provider of short-term and limited medical insurance plans, has announced its completion of the acquisition of HealthPocket, a consumer-facing, Web-based health plan shopping service headquartered in Sunnyvale, Calif.

The deal was valued at $32 million, with $20.6 million coming in cash, $1.4 million in HealthPocket debt paid by HII, and the balance derived from the transfer of 788,000 shares of HII common stock and the option to purchase another 113,000 shares, according to a company news release.

“The incorporation of HealthPocket into Health Insurance Innovations fits with our growth strategy of continued innovation of unrivaled products and technology solutions within the insurance industry to further enhance our competitive advantage,” Mike Kosloske, CEO of HII, said in a statement. “This transaction will increase leads, drive sales and enable us to more swiftly expand into lucrative market adjacencies,” such as Medicare and employer-sponsored health plans, Kosloske said.

HealthPocket co-founders and CEO Bruce Telkamp and President Sheldon Wang will stay on to run HealthPocket as a “consumer brand” of HII, serving as chief operating officer and chief technical officer of HII, according to the statement. They also will serve in alternating years on the company’s board of directors.

Shares of Health Insurance Innovations common stock closed Monday at $12.13, up nearly 6%.

Follow Joseph Conn on Twitter: @MHJConn