Primerica
April 19, 2021
Primerica and Etelequote Limited said they signed a definitive agreement for Primerica to acquire 80 percent of e-TeleQuote operating subsidiaries at a 600 million dollar enterprise value. Primerica plans to buy the remaining 20 percent over as long as four years. The companies also signed a distribution agreement so Primerica U.S. representatives can refer Medicare Advantage and Medicare Supplement business to e-TeleQuote. Closing was expected in July 2021.
Chief executive Glenn Williams said the deal combines Primerica middle-income client relationships with e-TeleQuote expertise in senior health insurance. e-TeleQuote, based in Clearwater, Florida, distributes Medicare-related plans in all 50 states and Puerto Rico and works with carriers that include United Healthcare, Humana, and Anthem.
Under the share purchase agreement, Primerica would pay about 360 million dollars for the 80 percent equity stake based on an implied equity value of 450 million dollars after estimated net debt of 150 million dollars at closing. Funding was planned through cash, a revolving credit draw, and a sellers note. Sellers could earn up to 50 million dollars more if 2021 and 2022 targets are met. Primerica suspended share buybacks for the rest of 2021 after the announcement.