nib holdings (ASX:NHF) has snapped up Australia’s only specialist corporate group health insurer, GU Health, for $155.5 million.
Nib inked the deal, to buy the company from Australian Unity (ASX:AYU).
The health insurance company, nib, will fund the purchase through, an institutional equity placement [of $60 million], a share purchase plan [of $15 million] with the remainder through debt.
GU Health has premium revenue of $190 million and 34,000 policy holders. Australian Unity says the sale of the business allows it focus on its core offering of human services, while it's a natural fit for nib's offering.
The transaction will be completed in the final quarter of 2017.
Shares in nib holdings (ASX:NHF) are in a trading halt, last traded at $5.77.
