Safeguard Scientifics Announces Zipnosis Exit

RADNOR, Pa., April 12, 2021 (GLOBE NEWSWIRE) -- Safeguard Scientifics, Inc. (NYSE:SFE) (“Safeguard” or the “Company”) today announced the exit of our ownership interest in Zipnosis.  Safeguard received $3.3 million of initial cash proceeds and a preferred equity interest in Bright Health Group, a national integrated healthcare company (“Bright Health”). The majority of the consideration we received in the transaction is reflected in this preferred equity interest.  Additional cash proceeds may be received from the final determinations of net working capital and the resolution of various escrow contingencies.  Safeguard will report a gain on the sale of the Zipnosis ownership interest for the quarter ended March 31, 2021, based on the total value received from the transaction.

“We are excited about this transaction and the prospects for Safeguard of being a Bright Health shareholder.  We also want to congratulate Zipnosis’ Founder and CEO, Jon Pearce, and all of the Zipnosis employees on achieving this milestone.  We wish them the best of luck as part of the Bright Health team,” commented Safeguard CEO Eric Salzman. 

Safeguard deployed an aggregate of $10.0 million to Zipnosis beginning in December 2015.

About Safeguard Scientifics
Historically, Safeguard Scientifics has provided capital and relevant expertise to fuel the growth of technology-driven businesses.  Safeguard has a distinguished track record of fostering innovation and building market leaders that spans more than six decades.  Safeguard is currently pursuing a focused strategy to value-maximize and monetize its ownership interests over a multi-year time frame to drive shareholder value.  For more information, please visit www.safeguard.com.

About Bright Health Group
Bright Health Group is building the national, integrated healthcare system of the future by integrating financing, care delivery services and technology to create a better performing healthcare experience for physicians and consumers. As a national integrated healthcare platform, we offer diversified health products and managed care services to over 500,000 consumers in 14 states and more than 50 markets. By aligning with our Care Partners, we provide consumers access to personalized care teams tailored to their individual needs. We deliver high quality virtual and in-person clinical care to over 220,000 patients through our approximately 40 managed and affiliated advanced risk-bearing primary care clinics. We give providers the tools they need to optimize their practices and deliver valued-based care to the patients they serve. Driving it all is our person-centric, intelligent technology platform which connects consumers, payers and providers with the common purpose of lowering healthcare costs while improving outcomes, experience and access. We are making healthcare right. Together. Learn more at www.brighthealthgroup.com.