Principal Financial Group Inc.
) announced a strategic deal with Md.-based Accountable Health,
Inc., under which the latter will provide a wide variety of
wellness programs to the business and health plan customers of
the former. Moreover, Principal Financial will transfer the
ownership of its subsidiary - Principal Wellness Company - to
Accountable Health. Further, Principal Financial will make
financial investment in Accountable Health.
Accountable Health will absorb all the employees of Principal
Wellness once the deal is closed. The tentative date for the same
is Jul 1, 2013.
Both Accountable Health and Principal Financial are
anticipating a seamless transition for the clientele and advisors
of the latter. However, the companies did not divulge the
financial details of the agreement.
Principal Financial believes that Accountable Health will be
able to combine the resources and expertise of both the
companies, thus facilitating expansion amid the swiftly
transforming and highly competitive environment in the healthcare
industry. The company believes that the implementation of the
Affordable Care Act will increase business opportunities for the
company. Moreover, as an investor of Accountable Health,
Principal Financial will gain from the growth of the former.
Accountable Health provides a gamut of healthcare services and
strives to enhance the quality, efficiency and cost of delivering
these services by creating or acquiring various
technology-enabled solutions. Although the company currently is
headquartered in Rockville, Md., it plans to open offices in Des
Moines and Indianapolis.
Principal Financial currently carries a Zacks Rank #3 (Hold).
Other investment management companies worth considering are
AllianceBernstein Holding L.P.
GAMCO Investors, Inc.
Noah Holdings Limited
). All these companies carry a Zacks Rank #1 (Strong Buy).
ALLIANCEBERNSTN (AB): Free Stock Analysis
GAMCO INVESTORS (GBL): Free Stock Analysis
NOAH HLDGS LTD (NOAH): Free Stock Analysis
PRINCIPAL FINL (PFG): Free Stock Analysis
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