The sale was completed in two transactions for an aggregate purchase price of approximately $5.6 million.
In one transaction, the CED's operations in New York State, known as D&D Associates, Allegiance Health and Medimax, were sold to DDA Management Services LLC. In another transaction, the CED's operations in Michigan, known as the Michigan Evaluation Group, were sold to J&P Michigan Evaluation Group Inc. Both transactions closed on Monday, June 30.
"Divesting the Claims Evaluations Division is a strategic move that will strengthen our balance sheet and enable us to focus on and invest in our core businesses," said Roy Bubbs, president and CEO of Hooper Holmes.
The decision to sell the CED was based on several factors, including the subsidiary's limited ability to significantly contribute to the long-term strategic goals of the company. The company expects to record a net gain of approximately $1.0 million in connection with the transaction.