MyHealthMath, a Portland-based insurance-tech company, has merged with UK-based Sherpa to form a new global business called HYKE that combines their respective products to create a new, comprehensive platform that helps individuals and their employers make more informed decisions around selecting the most cost-effective insurance plans.
MyHealthMath, which raised $3.5 million last year, developed a platform that helps people choose the most cost-effective health insurance plan. The company partners with health insurers and businesses to make the tool available to those end users. Maine Startups Insider selected MyHealthMath as a 2019 Maine Startup to Watch.
Sherpa, which has offices in London and Singapore, offers a similar platform with a complementary focus. Its platform helps individuals making purchasing decisions around life, property and casualty insurance.
Merger cements pre-existing strategic partnership
The companies in early 2022 formed a strategic partnership, finding traction by bundling their products and providing end users with a holistic picture of all of their insurance needs, from medical to voluntary to personal lines of coverage, and year-round guidance.
At the enterprise level, the combined platform, which has been live in the U.S. market since last fall, can also help employers and consultants provide targeted benefits packages that address individual needs and maximize cost savings.
“The strong positive reaction from employers, brokers, insurance carriers and benefit administration platforms made a full merger an obvious move,” said Chris Kaye, former CEO of Sherpa and now CEO of HYKE.
The all-stock merger was completed on June 1, 2023. An all-stock deal means no cash changed hands, but the respective owners of both companies received stock in the new entity as compensation, Bob Watterson, founder and former CEO of MyHealthMath, told MSI. Watterson has stepped into the role of chief financial officer for HYKE.
No layoffs, Portland targeted for growth
MyHealthMath had 17 employees at the time of the merger, including nine in Maine, Watterson said. All of them had a stock option plan that will transfer over to HYKE, he said.
Sherpa had one person in the United States pre-merger, as well as 15 in Europe and Asia.
Kaye told MSI there are no layoffs planned across the combined company. In fact, the number of U.S. employees has already increased to 23 since the merger, including three in Portland, he said before adding—”I’m one!”
Kaye confirmed for MSI that he is in the process of moving to Portland with plans to build HYKE atop the foundation MyHealthMath has laid in Maine.
The company is currently hiring to fill six open roles.
“This is very much a growth-focused M&A,” said Kaye, who before co-founding Sherpa spent 15 years advising insurance companies as the managing director of Boston Consulting Group’s Asia Insurance practice, according to a 2017 TechCrunch article about Sherpa’s $2.3 million seed round.
Over the coming months, HYKE will continue to merge technologies and refine its new offerings, with plans to unveil an enhanced enterprise platform in the near future.
