Tuesday 23 June 2020

Connecticut, US-based online insurance marketplace HealthPlanOne, Inc. and Peloton Equity, LLC have agreed to terms with Lightyear Capital LLC for a recapitalisation of the company, giving Lightyear's affiliated investment funds an indirect controlling stake in HPOne, the company said.

Lightyear's affiliated investment funds will acquire a majority stake in HPOne from Peloton, management and members of the board, and the transaction will invest cash into HPOne to support future growth and strategic objectives.

Existing shareholders will retain a significant ownership stake in the company. Financial terms of the transaction were not disclosed. The transaction is expected to close in July 2020.

Baird served as the exclusive financial advisor to HPOne and Peloton with respect to this transaction. Goodwin Procter LLP acted as legal advisor to HPOne and Lowenstein Sandler LLP acted as legal advisor to the company's management team.

Peloton Equity, LLC is a Connecticut-based private equity firm that focusses exclusively on growth capital investments in the healthcare industry.

Lightyear Capital LLC is a financial services-focussed private equity firm based in New York.

HPOne is a technology-enabled platform and online marketplace delivering end-to-end, direct-to-consumer enrollment solutions focussed exclusively on the high-growth Medicare insurance market.