Selway Capital Acquisition Corporation (OTCBB: SWCA, SWCAW, SWCAU) announced today that it has signed a definitive agreement to enter into a business combination with Healthcare Corporation of America, Inc. (HCCA) , which is one of the fastest growing PBM’s in the market. Upon closing, Selway will change its name to Healthcare Corporation of America.
Management expects the closing to occur by mid-March 2013, subject to the satisfaction of closing conditions specified in more detail in the Current Report on Form 8-K to be filed by Selway.
Selway does not require shareholder approval to close the transaction. The combined company plans to conduct a post-closing tender offer so its public shareholders have the opportunity to convert their shares and participate in the transaction. The combined company will file the necessary documents with the Securities and Exchange Commission within thirty days after the closing of the business combination.
Business OverviewHealthcare Corporation of America is a rapidly growing pharmacy benefit manager, or PBM. Its mission is to reduce prescription drug costs for clients while improving the quality of drug care. It administers prescription drug benefits programs for employers who contract with it in order to provide this component of healthcare benefits to their employees. A growing customer base includes commercial clients of various sizes and industries, business associations and trade groups, local government entities, labor unions, charitable and non-profit organizations, and third-party administrators of self-insured benefit plans. The business model is firmly based on price transparency and proactive benefit cost management. The company operates in the marketplace under the name of its subsidiary, Prescription Corporation of America, or PCA. HCCA has its headquarters in Denville, New Jersey. HCCA has experienced rapid growth since operating under its current business model. In its first year in the market, 2010, the company booked approximately $358,469 of revenue. In 2011, it reached $28.2 million of revenue. Pending results of its audit, the company is expected to have approximately $38.4 million of revenue in 2012.