Provident American Corporation To Merge With Its Internet Subsidiary HealthAxis.com
EAST NORRITON, Pa.--(BUSINESS WIRE)--May 14, 1999--
HealthAxis.com Inc., The Leading Online Health Insurance
Marketer, to Become the Surviving Public Entity
Provident American Corporation (NASDAQ:PAMC) today announced that it will pursue a merger with its majority-owned subsidiary, HealthAxis.com Inc., the Internet's leading online health insurance marketer.
As such it is anticipated that HealthAxis.com will become the surviving entity of Provident American and will apply to NASDAQ for a new trading symbol. Provident has retained the investment banking firm of Advest Inc. (NYSE:ADV) to issue a fairness opinion on behalf of its shareholders in this transaction, while HealthAxis has retained BancBoston Robertson Stephens (NYSE:BKB).
Once the details are presented, the reorganization will require regulatory, board and shareholder approval from both Provident American and HealthAxis.com. Should such approvals be forthcoming, the merger is expected to close in the third or fourth Quarter of 1999. In addition, HealthAxis.com will expand its board of directors to seven members, including two yet to be named outside directors.
Additionally, the Provident board has authorized management to pursue the sale of its remaining insurance subsidiary, Provident Indemnity Life Insurance Company, which consists of its Military Life Business, Pre-Need and Health & Life businesses. The company is currently in discussions with several potential buyers. In December 1998, Provident sold its main insurance subsidiary, Provident American Life and Health Insurance Company, to Central Reserve Life Insurance Company, a subsidiary of Ceres Group Inc. (NASDAQ:CERG).
Alvin H. Clemens, chairman and CEO of Provident American Corporation, said: "Today's announcement marks the culmination of our year-long effort to transform Provident into a leading edge Internet business and the only true 'digital insurance agency.' "
About HealthAxis.com
HealthAxis.com Inc., a subsidiary of Provident American Corporation, is a pioneer in the Internet distribution of health and life insurance to the individual and small group markets. HealthAxis.com is a fully-transactional, "digital insurance agent." HealthAxis.com does not engage in any insurance underwriting and assumes no underwriting risk. Through its interactive, user-friendly, one-stop healthcare insurance Web site, healthaxis.com, HealthAxis.com provides customers with access to and the ability to purchase a full range of high quality, flexible insurance products and services at very 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, seven days a week. HealthAxis.com has Internet distribution agreements with AOL (Keyword: HealthAxis), Lycos, CNet and Snap!
About Provident American Corporation
Provident American Corporation is a holding company whose principal operating subsidiaries are HealthAxis.com Inc. and Provident Indemnity Life Insurance Co.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements made by Provident American 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 Provident American's expectations as well as other factors which could affect Provident American's financial statements, please refer to Provident American's reports filed with the Securities and Exchange Commission.
--30--sw/ny* flb/ny
CONTACT:
Investors: Deidre Holt, 610/275-3800
deidreh@earthlink.net
or
Media: Robinson Lerer & Montgomery, New York
Annalise Carol, 212/484-7237
acarol@rlmnet.com
|
