Hywin Holdings to Acquire Beijing iLife3 Technology to Expand into Health Management Industry
Hywin Holdings has announced that it has entered into a series of definitive share transfer agreements and capital increase agreement with Beijing iLife3 Technology Co. Ltd (“Life Infinity”), one of the leading integrated health management service providers in China, and its existing shareholders with an aggregate amount of over RMB140 million to acquire a controlling equity interest in Life Infinity, to expand into the rapidly growing health management market in China.
The Company expects the transaction to be completed by the end of August 2022, subject to customary closing conditions. Following the completion of the transaction, Life Infinity will be accounted for as a consolidated subsidiary of the Company.
Over the last decade, China’s healthcare sector has been growing at a double-digit pace to become a multi-trillion-dollar market. With rising affluence and an aging society, health management has become a priority for the families of Hywin clients in China, and a pressing topic for their wealth management advisors. Hywin, as a leading wealth manager with a high-net-worth client base across Greater China, has been acutely aware of client needs in the health management space and the significant value that can be created in their fulfillment. After a multi-year research effort on the health management sector, Hywin has accumulated strong expertise in this space, evidenced by the prominence of health topics in daily conversations with our clients, as well as the recent launch of the FactSet Hywin Global Health Care Index, which was inspired by Hywin’s insights on the health management sector.
“This transaction is the natural culmination of Hywin’s intellectual efforts in the health management space, and very much in response to client needs,” said Madame Wang Dian, Chief Executive Officer of Hywin. "We are thrilled to take this exciting next step with Life Infinity, and to deliver its well-established health management offerings to high-net-worth clients in Greater China. This acquisition represents another milestone in our strategic plans to unlock growing value from our enormous client franchise. This also makes Hywin the first independent wealth manager in China to integrate wealth and health into one holistic proposition, with cross-selling opportunities and cost synergies that naturally occur along with the wealth-health continuum.”
Lawrence Lok, Chief Financial Officer of Hywin, added: “Hywin’s over 1,600 relationship managers and 178 service centers across 88 cities in Greater China provide a strong infrastructure for introducing health management ideas to our clients as well as presenting health management solutions to them. The health management business will expand Hywin’s sources of revenues and further strengthen our client relationships. The complementarity of wealth and health will ensure our shareholders capture value from the two most important and systemic needs of China’s affluent population. Such an evergreen franchise will produce evergreen shareholder returns.”
Chen Li, Founder and Chairman of Life Infinity, commented: "Over the past 10 years, Life Infinity has dedicated to enhancing people’s quality of life through regenerative and preventive medical care, and premium health management. Health and wealth are intrinsically similar – crucial, complex, and private. Both services are built on long-term trust and can provide lasting value, and require the service providers to uphold fiduciary duties and professional devotion. This collaboration is a natural convergence, and marks a new era for the two companies. We see immediate as well as long-term synergies across branding, client service, solution delivery and cost efficiency. It is expected to enable both parties to provide more services and products to more clients, ultimately speeding up our growth and achieving more returns. We look forward to working closely with our Hywin colleagues in this transformative journey."