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BEIJING - TIAN RUIXIANG Holdings Ltd (NASDAQ:TIRX), a China-based insurance broker with a market capitalization of $14.4 million, announced Monday it has completed the acquisition of Ucare Inc. for $150 million in an all-stock transaction. According to InvestingPro data, TIRX currently trades at a Price/Book ratio of 0.37, suggesting the stock may be undervalued relative to its assets.
Ucare operates what the company describes as China’s only cloud-based AI-driven hospital and health insurance risk management platform. As part of the deal, TIRX issued 101,486,575 Class A ordinary shares, each with a par value of $0.025. The transaction comes as TIRX maintains strong liquidity with a current ratio of 6.74, though the company posted negative EBITDA of $2.85 million in the last twelve months.
The acquisition represents a strategic move by TIRX to expand into in-hospital distribution channels and capture growth opportunities in the health insurance sector. According to the company, Ucare’s platform helps providers, payers, and institutions reduce fraud, abuse, waste, and administrative costs.
Following the acquisition, TIRX plans to integrate Ucare’s AI platform into its underwriting and claims processing workflows. The company aims to leverage Ucare’s existing relationships with over 4,000 hospitals to expand business channels and develop new health insurance service offerings.
"This acquisition places us at the intersection of healthcare and insurance, unlocking data-driven insights that will transform how health insurance is designed, sold, and serviced," said Sheng Xu, Chairwoman and CEO of TIRX, in a press release statement.
Wei Zhu, CEO of Ucare, stated that joining TIRX would help accelerate the platform’s deployment and deepen integration with insurance services.
TIRX distributes property and casualty insurance products including commercial property, liability, and automobile insurance, as well as health and life insurance in China. The company has shown significant top-line growth with revenue increasing 158.74% over the last twelve months. For deeper insights into TIRX’s financial health and growth prospects, including additional ProTips and detailed metrics, visit InvestingPro.
In other recent news, Tian Ruixiang Holdings Ltd has announced its plans to acquire Ucare Inc. in an all-stock transaction valued at $150 million. Under the agreement, Ucare shareholders will receive over 101 million newly-issued class A ordinary shares of Tian Ruixiang, representing a significant portion of the company’s shares and voting power post-closing. Ucare, known for its AI-driven hospital and health insurance risk management platform, reported a net profit of $0.6 million on revenues of $5.4 million for the fiscal year ending October 31, 2024. This acquisition aligns with Tian Ruixiang’s strategy to expand within China’s health insurance market and integrate Ucare’s innovative solutions to enhance their offerings. The transaction is expected to close around July 2025, with shares held in escrow until Ucare meets a revenue target of at least RMB 150 million over three years. Post-acquisition, Ucare will operate as a subsidiary of Tian Ruixiang’s VitaCare Limited, with current management retaining their roles. Both companies’ leadership have expressed optimism about the strategic benefits of this acquisition. Investors are advised to review the company’s filings with the U.S. Securities and Exchange Commission for further details.
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