Ann: Investor Presentation - nib acquires GU Health, page-2

Looks like an eminently sensible acquisition.

They are paying 15x P/E, which reduces to around 11.5x, after synergies (on an after-tax basis).

Normally, when company managements cite synergies as the basis for justifying what they pay for acquisitions, the first thing that I find happening is my eyebrows get raised, after which my brow tends to go into deep furrows.

If there was ever a set of synergy claims that I was going to remotely trust, then it would be one made by NHF's CEO and CFO.

Essentially, they are paying $156m to buy $194m of Premium Revenue.
For context, NHF is a $2.5bn company and its Premium Revenue is currently ~$2.0bn.

And they are gaining 34,000 policyholders covered under corporate private health insurance, to take them to 80,000 in this market segment. Given they estimate the corporate private health insurance market to be around 400,000 in size, this transaction gives them scale, as well as ample headroom to continue to grow further in the corporate space.