HealthAxis.com Puts Upstream Merger Plans With Provident On Hold
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HealthAxis.com Puts Upstream Merger Plans With Provident On Hold Pending Outcome of Discussions With an Undisclosed Third Party Regarding a Potential Business Combination EAST NORRITON, Pa.--(BUSINESS WIRE)--Oct. 28, 1999-- Provident American Corporation (NASDAQ: PAMC) HealthAxis.com, Inc., majority-owned subsidiary of Provident American Corporation (NASDAQ: PAMC) and the leading online insurance marketer, today announced that discussions relating to the upstream merger with its parent, Provident American Corporation, have been put on hold pending the outcome of discussions with an undisclosed third party regarding a potential business combination. If the discussions result in a binding agreement regarding a business combination, it is expected that the transaction will be subject to various conditions and contingencies. Provident previously announced that, subject to certain conditions, it expected the upstream merger to close during the third or fourth quarter of 1999. Michael Ashker, President and CEO of Provident American Corporation and HealthAxis.com, said, "HealthAxis.com is presently in discussions with an undisclosed third party which may ultimately result in a business combination. "However, at this time, it is premature to disclose any details as myriad contingencies exist upon which any action would depend. "In light of these recent developments Provident and HealthAxis have decided to suspend indefinitely their previously announced intention to merge until such time that both companies can reassess their strategic alternatives with greater clarity. As always, both companies remain committed to maximizing shareholder value." About HealthAxis.com HealthAxis.com, Inc. is a pioneer in the Internet distribution of health and life insurance to the individual and small group markets. HealthAxis.com does not engage in any insurance underwriting and assumes no underwriting risk. Through its interactive, user-friendly, one-stop insurance Web site, www.healthaxis.com, HealthAxis.com provides customers with the ability to purchase a full range of high quality, flexible insurance products and services at competitive prices. HealthAxis.com also provides product and health information, instant price quotes, electronic application processing, online billing, claims status, policy or personal information changes, and a customer hotline. Policyholders can easily and conveniently view billing information, claims history and policy details day and night, 7 days a week. HealthAxis.com has Internet distribution agreements with AOL (Keyword: HealthAxis), Lycos, CNET, Snap.com and Yahoo!. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements made by the Company which are not historical facts may be considered forward-looking statements, including, without limitation, statements as to trends, management's beliefs, expectations and opinions, which are based upon a number of assumptions concerning future conditions that ultimately may prove to be inaccurate. Such forward-looking statements are subject to risks and uncertainties and may be affected by various factors which may cause actual results to differ materially from those in the forward-looking statements. For further information which could cause actual results to differ from the Company's expectations as well as other factors which could affect the Company's financial statements, please refer to the Company's reports filed with the Securities and Exchange Commission. --30--CF/ph* MF/ph CONTACT: HealthAxis.com Investor Contact: Deidre Holt, 610/275-3800 dholthealthaxis.com or Media Contact: Denise Bauwens, 610279-3561 dbauwenshealthaxis.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com (c) 1998 Business Wire
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