Convey Health Solutions Hldgs Stock Price, News & Analysis

Convey Health Solutions Holdings, Inc. (NYSE: CNVY) has been taken private by TPG Capital for $10.50 per share in cash, amounting to an enterprise value of approximately $1.1 billion. This acquisition, finalized on October 7, 2022, follows a definitive agreement signed on June 21, 2022. Following the transaction, CNVY's common stock has been delisted from the NYSE. CEO Stephen Farrell emphasized the ongoing partnership with TPG to enhance Convey's technology solutions for healthcare plans and their members.

Convey Health Solutions (NYSE: CNVY) announced a definitive merger agreement with TPG Capital to acquire all outstanding shares not owned by TPG for $10.50 per share, reflecting a 99% premium over its 30-day average price. The transaction values Convey at approximately $1.1 billion. The Board, advised by independent experts, unanimously approved the deal, expected to close in the second half of 2022. As a result, Convey will transition to a private company, enhancing its ability to invest and serve customers more effectively.

Convey Health Solutions Holdings (NYSE: CNVY) reported Q1 2022 net revenues of $96.7 million, reflecting a 17% increase from $82.6 million in Q1 2021. The company experienced a net loss of $1.2 million, impacted by $1.6 million in acquisition-related expenses. Adjusted EBITDA decreased by 3% to $15.3 million from $15.9 million the previous year. The growth was driven by the Technology Enabled Solutions segment, with revenues reaching $83.2 million, a 20% year-over-year increase. Despite challenges in EBITDA margins due to supply chain issues, the company remains optimistic about future growth.

Convey Health Solutions Holdings, Inc. (NYSE: CNVY) will release its first quarter 2022 financial results on May 10, 2022, after market close. A conference call to discuss these results will follow at 4:30 p.m. (ET). Participants can join the call by calling (844) 200-6205 for U.S. callers or +1 (929) 526-1599 internationally. A live audio webcast will also be available on Convey's Investor Relations website. The earnings release and related materials can be accessed online, with a replay available for 90 days post-call.

Convey Health Solutions reported Q4 2021 net revenues of $97.3 million, a 12% increase year-over-year. However, net income fell to $0.4 million from $8.1 million in Q4 2020 due to one-time earnings. For the full year, revenues stood at $337.6 million (+19%), but the company reported a net loss of $10.0 million linked to IPO costs. Guidance for 2022 estimates revenues of $390 million to $410 million, marking an 18% growth. Adjusted EBITDA for the year is expected to be $80 million to $84 million.

Convey Health Solutions (NYSE: CNVY) will announce its fourth quarter and full year 2021 financial results and provide 2022 guidance on March 23, 2022, after market close. A conference call will follow at 5:00 p.m. (ET) for a detailed review of the financial performance. The release will be accessible via Convey's Investor Relations website, where materials will also be available. Convey Health Solutions specializes in healthcare technology, offering compliant member support solutions and assisting millions with Medicare processes.

Convey Health Solutions Holdings, Inc. (NYSE: CNVY) appointed Paul Campanelli to its Board of Directors on February 15, 2022. With 30 years in healthcare, he previously led Endo International and Par Pharmaceutical, where he facilitated substantial acquisitions. Campanelli's experience is expected to enhance Convey's ability to drive clinical and financial outcomes through innovative technology and services. CEO Stephen Farrell expressed confidence in Campanelli's contributions towards improving the member experience and supporting compliance in Medicare processes.

On February 1, 2022, Convey Health Solutions (NYSE: CNVY) announced its successful acquisition of HealthSmart International, enhancing its service offerings for major health plans. This acquisition integrates HealthSmart's health and diagnostic products focused on home-based care with Convey's supplemental benefits, aiming to improve health outcomes for Medicare members. The transaction, financed entirely through debt, is expected to be immediately accretive for shareholders. CEO Stephen Farrell emphasized the positive impact on member access to quality products and overall health management.

Convey Health Solutions (NYSE: CNVY) announced its acquisition of HealthSmart International for $77.5 million in cash. The deal, subject to customary conditions, may include up to $15 million based on HealthSmart's revenue performance in 2022. This acquisition aims to enhance Convey's supplemental benefits offerings, particularly for Medicare Advantage members, by integrating HealthSmart's health and wellness products. The transaction is anticipated to close in Q1 2022, potentially improving health outcomes and expanding Convey's market presence.