Hooper Holmes and Provant Health Solutions have agreed to combine in an all-stock transaction which will create one of the largest health and wellness companies in the U.S.

On a combined basis, 2016 pro-forma annual revenue of the merged company is approximately $67 million, excluding $3.8 million of pass-through gift card revenue at Provant. This transaction is expected to significantly improve financial performance, expand the merged company’s combined national network of local health professionals and advance its well-being solutions technology.

“Scale, growth and synergies will create a compelling financial model and are expected to improve operating cash flow for our merged company. Our channel partners will be supported by an expanded network of local health professionals and direct customers will gain access to an expanded suite of personalized digital services that promote, track and measure healthy behaviors and outcomes,” said Henry E. Dubois, CEO of Hooper Holmes.

“Combining Hooper’s market-leading clinical services with Provant’s expertise in member service, personalized well-being and advanced analytics will deepen collaboration with our customers and channel partners,” said Heather Provino, CEO and founder of Provant.

Financing to support the transaction and provide working capital has been obtained from SWK Holdings, a specialized finance company focused on the healthcare sector, through a $6.5 million, five-year term loan at LIBOR plus 12.5%, a reduction of 150 basis points from Hooper’s current term facility. Principal repayments start in Q1/19. The company has also expanded its current asset-based credit facility from $7 million to $10 million with an accordion to $15 million during high-volume months.

Upon closing, Dubois will serve as CEO of the merged company, and Provino will serve as chief strategy officer.

Cantor Fitzgerald advised Hooper Holmes. Raymond James advised Provant.

Olathe, KS-based Hooper Holmes provides on-site health screenings, laboratory testing, risk assessment and sample collection services to wellness and disease management companies, employers and brokers, government organizations and academic institutions nationwide.

Provant is a provider of workplace well-being solutions in North America, with a growing global presence. Founded in 2001, Provant partners with employers to improve employee health. The East Greenwich, RI-based company delivers customized well-being strategies and services on-site, telephonically and digitally utilizing advanced data management.