Patriot National Sells Global HE Research

Patriot National, a provider of technology and outsourcing to the insurance industry, said Tuesday that it has sold Global HR Research, a pre-hire intelligence provider, to a subsidiary of Renovo Capital for up to $30 million. Patriot National traded down pre-bell 1.5%. The company said its strategic plan is to focus on core businesses, workers compensation insurance services and technology.

Patriot National said the sale price of Global HR included $20 million paid to Global HR in cash at closing, and $5 million deposited into escrow for possible purchase price and working capital adjustments. In addition, Global HR may receive an earnout payment of up to $5 million.

The company said it “expects that the sale of Global HR will impact its prior 2017 financial guidance, issued on March 14…for fee Income and adjusted EBITDA for the balance of the year by $13 million and $2 million, respectively.”

By Stephen Holmes