Centerbridge Partners has acquired GoHealth, a provider of direct-to-consumer sales, marketing and customer service products used by health insurance providers.
Through a range of distribution channels, GoHealth connects consumers with insurance carriers in the Medicare, individual and family, and small group markets. The company’s products and services allow insurance carriers to both lower their marketing expenses and improve customer acquisition and retention.
Chicago-based GoHealth was founded in 2001 by President Brandon Cruz and CEO Clint Jones, who will continue to lead the business and retain an ownership stake in the company in partnership with Centerbridge (www.gohealth.com).
“In the two decades since its founding, GoHealth has been committed to making health insurance accessible, affordable, and personalized for individuals across the country,” said Mr. Jones. “Centerbridge’s significant investment, and extensive expertise in the healthcare and financial services sectors, will position GoHealth to improve its balance sheet, further invest in technology and innovation, and deepen market penetration for the benefit of our customers and the consumers they serve.”
“GoHealth is a leading player in a large and rapidly growing market, uniquely positioned to capitalize on the significant opportunities ahead,” said Mr. Cruz. “We are poised to benefit from secular industry trends driving growth in the Medicare Advantage segment, including new consumers aging into Medicare and seniors’ increasing propensity to buy healthcare plans online. We are excited to be partnering with Centerbridge, and to lead GoHealth in the next chapter of our growth.”
“GoHealth is a highly differentiated industry-leader operating in rapidly expanding markets with a demonstrated track record of successfully entering new market segments and driving consistent growth,” said Jeremy Gelber, a senior managing director at Centerbridge. “In bridging the gap between consumers and insurance carriers, the company provides an innovative and highly scalable service to its broad network of healthcare relationships.”
Centerbridge invests from $50 million to $300 million in US-based leveraged buyouts and distressed securities. Sectors of interest include consumer, financial services, healthcare, industrials, real estate, and technology, media & telecom. The firm has $28 billion of capital under management and is headquartered in New York with an additional office in London (www.centerbridge.com).
“GoHealth will be a compelling addition to our investment portfolio, and we look forward to working with its world-class team, led by its accomplished co-founders, in the company’s next phase of growth,” added Mr. Gelber.
This transaction is expected to close in the fourth quarter of 2019.
© 2019 Private Equity Professional | August 19, 2019