Benefytt Technologies Inc (fka HII)

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Health Insurance Innovations, Inc. (NASDAQ:HIIQ) has 213 institutional investors and shareholders that have filed 13D/G or 13F forms with the Securities Exchange Commission (SEC). These institutions hold a total of 12,217,822 shares. Largest shareholders include Cannell Capital Llc, Vanguard Group Inc, P2 Capital Partners, LLC, BlackRock Inc., Susquehanna International Group, Llp, Atom Investors Lp, River Road Asset Management, LLC, Susquehanna International Group, Llp, Citadel Advisors Llc, and Nuveen Asset Management, LLC.

13D from Voss Capital

Purpose of Transaction.
The Reporting Persons purchased the Shares based on the Reporting Persons’ belief that the Shares, when purchased, were undervalued and represented an attractive investment opportunity. Depending upon overall market conditions, other investment opportunities available to the Reporting Persons, and the availability of Shares at prices that would make the purchase or sale of Shares desirable, the Reporting Persons may endeavor to increase or decrease their position in the Issuer through, among other things, the purchase or sale of Shares on the open market or in private transactions or otherwise, on such terms and at such times as the Reporting Persons may deem advisable.

The Reporting Persons believe that the Issuer is one of the most misunderstood companies in the public markets. The Reporting Persons believe that the Issuer’s Shares are deeply undervalued and do not reflect the high quality of its business, its leading position in the industry, and the Issuer’s potential for long-term revenue, earnings and cash flow growth.

As the Issuer’s individual and family plan (“IFP”) business goes into partial run-off, throwing off prodigious free cash flow in 2020 and beyond, the Reporting Persons believe that the IFP business alone is worth at least $250 million due to the conservatively marked contract assets on the balance sheet. The Reporting Persons are encouraged to hear the Issuer reiterate its commitment to investing in and growing its promising Medicare business. The Issuer’s most direct trading comparable, eHealth Inc. (“EHTH”) (NASDAQ: EHTH), is valued 4.5x 2020 revenue estimates. If the Issuer were to generate close to $150 - $200 million of Medicare related revenue in 2020 and were ascribed EHTH’s 4.5x forward revenue multiple (despite growing even faster than EHTH and being more profitable), that segment alone would be worth multiples of the current Share price.

The M&A environment in the insurance technology and brokerage space has rarely been more active than it is today with numerous well capitalized private equity firms and strategic acquirers buying similar businesses at valuation multiples above 4.0x EV/Sales. The table below shows precedent transactions that have occurred just within the last eight months.

https://www.sec.gov/Archives/edgar/data/1561387/000092189519003059/sc13d10925hea_12232019.htm