The unsolicited proposal is to acquire all the outstanding Class A Common Stock, according to a filing with the U.S. Securities & Exchange Commission.
The proposal comes from Clinton P. Jones, CEO of NVX, and Brandon M. Cruz, president of NVX. The two are both co-founders and non-executive chairmen of GoHealth’s board of directors.
Centerbridge Partners is a New York-based private-equity firm, and NVX is a Chicago-based sales and communications company. Combined, they control 61% of the voting stock.
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GoHealth said in a press release statement that independent members of GoHealth’s board will review the proposal.
The release said GoHealth “remains committed to serving Medicare Advantage beneficiaries, working with health plans and generating value for all stakeholders.”
In June 2022, after GoHealth’s stock went into a tailspin, Jones, who was then CEO, was replaced by Vijay Kotte and Cruz, who was chief strategy officer, became non-executive chairman.
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Jones and Cruz founded the company as an online marketplace for health insurance in 2001. GoHealth rode the Obamacare wave, then transitioned to Medicare plans, cashing in on the growing number of baby boomers hitting retirement age. The company was sold to Centerbridge for $1.3 billion in April 2019 and went public in July 2020 at $21 per share.
The stock fell as low as 59 cents per share a year ago. In November, the company did a 1-for-15 reverse stock split. Accounting for the split, the shares are down about 93% from the IPO price.
This story first appeared in Crain’s Chicago Business.
