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BEIJING - Tian Ruixiang Holdings Ltd (NASDAQ:TIRX), a China-based insurance broker with a current market capitalization of $18.6 million, announced today its plans to fully acquire Ucare Inc., the operator of China’s unique cloud-based, AI-driven hospital and health insurance risk management platform. The all-stock transaction is valued at $150 million. According to InvestingPro data, TIRX has shown strong momentum recently, with a notable 34.5% return over the past week and trades near its Fair Value.
Under the terms of the agreement, Ucare shareholders will receive over 101 million newly-issued class A ordinary shares of Tian Ruixiang, which will constitute approximately 91.75% of the company’s class A shares and 13.70% of the total voting power post-closing. The share price is based on the weighted average closing price over the last three months, amounting to $1.478 per share. TIRX currently trades at $1.83, showing significant volatility with a 52-week range of $1.07 to $4.15.
Ucare is known for its innovative solutions in healthcare, aiming to reduce fraud and administrative costs through its AI platform. The platform leverages a vast hospital database to refine disease models and integrate real-world data. Serving over 4,000 hospitals, Ucare has significantly contributed to reducing avoidable healthcare expenditures, totaling an estimated $6.82 billion as of December 2024. In the fiscal year ending October 31, 2024, Ucare reported a net profit of $0.6 million on revenues of $5.4 million. InvestingPro analysis reveals TIRX maintains strong liquidity with a current ratio of 6.74, though it has not been profitable over the last twelve months. Get access to 8 more exclusive ProTips and detailed financial metrics with InvestingPro.
The acquisition is aligned with the expansion of China’s health insurance market and national health coverage reforms. Tian Ruixiang intends to integrate Ucare’s AI analytics and clinical tools to develop differentiated health insurance products and strengthen distribution within hospital systems. The transaction is expected to close around July 2025.
Shares issued in the acquisition will be held in escrow, with release contingent on Ucare achieving a revenue target of at least RMB 150 million over three years following the closing. Post-transaction, Ucare will continue to operate as a subsidiary of Tian Ruixiang’s wholly-owned subsidiary, VitaCare Limited, with key Ucare management, including CEO Mr. Wei Zhu, maintaining their roles.
CEO of Ucare, Mr. Wei Zhu, expressed enthusiasm for the deal, highlighting the potential to scale R&D and expand offerings. Tian Ruixiang’s CEO, Ms. Sheng Xu, emphasized the strategic importance of the acquisition for expanding business channels and leveraging Ucare’s health insurance risk management solutions.
This news is based on a press release statement from Tian Ruixiang Holdings Ltd. Investors are reminded to consider the forward-looking nature of this announcement and review risk factors as detailed in the company’s filings with the U.S. Securities and Exchange Commission. For comprehensive analysis and real-time updates on TIRX and similar investment opportunities, visit InvestingPro to access detailed financial metrics, Fair Value estimates, and expert insights.
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