Recently, Principal Financial Group Inc. (PFG - Analyst Report) 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. (AB - Snapshot Report), GAMCO Investors, Inc. (GBL - Snapshot Report) and Noah Holdings Limited . All these companies carry a Zacks Rank #1 (Strong Buy).