Purchase Agreement revised to $4.3 million from $14.3 million initially
The Amacore Group (Amacore), a provider of membership benefit programs and insurance programs, has revised its March 2008 stock purchase agreement for US Health Benefits Group (USHBG).
They originally agreed for a value of $14.3 million, which consisted of $9 million worth of common stock, with the number of shares issued contingent upon future share price, $2.9 million in guaranteed cash, and up to an additional $2.4 million in cash, contingent upon division profitability.
The amended purchase price consideration consists of $4.3 million in cash, resulting in around $10 million reduction in purchase price. The new agreement includes targeted sales incentives, designed to benefit both Amacore and USHBG.
USHBG is an inbound generating telemarketing operation, primarily marketing major and limited medical benefit plans. Amacore operates this division through US Health Benefits Group, US Healthcare Plans, and On The Phone, each a wholly-owned subsidiary.