BEIJING (dpa-AFX) - Tian Ruixiang Holdings Ltd (TIRX), a China-based insurance broker, on Friday announced that its subsidiary, VitaCare Ltd., has signed an agreement to acquire Ucare Inc. for $150 million to drive growth in the health insurance sector.
In the pre-market trading, Tian Ruixiang is 29.29% higher at $2.39 on the Nasdaq.
The transaction is expected to close on or about July.
Under the deal, the sellers will receive 101,486,575 new Tian Ruixiang Class A shares, valued at $1.478 each, based on the 3-month average price.
The shares represent about 91.75% of Tian Ruixiang's total Class A shares and around 13.70% of its voting power once the deal closes.
Upon completion of the deal, Ucare will become a wholly-owned unit of VitaCare, with CEO Wei Zhu and key leaders staying on to support growth.
Ucare uses AI-driven healthcare solutions to cut fraud, costs, and admin work, serving over 4,000 hospitals and saving an estimated $6.82 billion by December 2024.
The acquisition comes at a time when China's health insurance market is growing alongside national reforms, with Tian Ruixiang aiming to use Ucare's AI tools to create unique products, boost hospital distribution, and advance as a data-driven, platform-based insurer.
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