ECGI Holdings Completes Acquisition of Avanta Group, Establishing Foundation for AI-Enabled Healthcare Platform

October 13 closing adds Avanta’s network of existing healthcare providers, management services and benefits commerce to ECGI’s AI-focused healthcare strategy

IRVINE, Calif., Oct. 15, 2026 (GLOBE NEWSWIRE) — via IBN — ECGI Holdings, Inc. (OTC: ECGI) (“ECGI” or the “Company”) today announced that it completed its acquisition of Avanta Group, Inc. (“Avanta”) on October 13, 2026. Under the definitive share exchange agreement, ECGI acquired 100% of Avanta’s outstanding shares, making Avanta a wholly owned subsidiary and establishing healthcare as ECGI’s primary business focus.

Avanta brings together a network of existing healthcare providers, healthcare management services, benefits commerce and health technology capabilities. Its integrated model connects direct clinical services and provider support with the administration and data infrastructure used in value-based care. The acquired businesses also include a developing health plan, whose launch remains subject to regulatory approvals.

Through Avanta’s Management Services Organization (MSO), the combined company has capabilities supporting payer contracting, practice administration, care coordination, quality-measure programs and provider engagement. Avanta’s benefits commerce activities are designed to connect healthcare and wellness resources, including over-the-counter products, with the needs of members and care teams.

ECGI intends to use this operating infrastructure as the foundation for AI-enabled healthcare technology. Development priorities include tools for identifying care gaps, supporting earlier patient outreach, automating administrative workflows, tracking quality measures and improving information flow among providers and care teams. Planned AI applications will support, rather than replace, clinical decision-making by qualified healthcare professionals.

“This acquisition brings Avanta’s provider relationships, healthcare management capabilities and benefits commerce operations into a public-company platform focused on AI-enabled healthcare development,” said Daniel Nguyen, Chief Executive Officer of Avanta Group. “Our objective is to connect these businesses through practical AI and automation tools that help care teams work more efficiently and support a broader range of services over time.”

Healthcare Market Opportunity

According to the Centers for Medicare & Medicaid Services (CMS), U.S. healthcare spending totaled $5.3 trillion in 2024 and is projected to reach approximately $9.0 trillion by 2034, reflecting average annual growth of 5.4% from 2025 through 2034. A separate analysis by KFF reports that 35.2 million people were enrolled in Medicare Advantage in 2026, representing 55% of eligible Medicare beneficiaries. ECGI believes Avanta’s operating infrastructure and planned AI applications provide a foundation for pursuing opportunities within this broad healthcare landscape. These industry figures are not estimates of ECGI’s future revenue or market share.

Transaction Terms

Under the share exchange agreement, ECGI issued 17,160,000 shares of Series A Voting Convertible Preferred Stock in exchange for all outstanding Avanta shares. Of those shares, 10,296,000 (60%) vested at closing. The remaining 6,864,000 (40%) are subject to transfer restrictions and performance-based vesting: one-half may vest once ECGI and its consolidated subsidiaries recognize at least $100 million in annual revenue, and the balance may vest upon recognizing at least $200 million in annual revenue, in each case as defined in the agreement and calculated in accordance with U.S. generally accepted accounting principles. Restricted shares not vested during the approximately five-year restriction period are subject to forfeiture. The restricted shares retain voting rights during that period. These thresholds are contractual vesting conditions, not company revenue projections or guarantees.

Separately, ECGI expects its outstanding Series B super-voting preferred share to be transferred in connection with the transaction and related leadership transition. The Series B transfer is separate from the Series A shares issued as acquisition consideration.

Health Plan Regulatory Process

Avanta Health Plan, Inc. has submitted a letter of intent to apply to the California Department of Managed Health Care, but has not yet filed its formal license application. It intends to submit a notice of intent to apply to the Centers for Medicare & Medicaid Services later in October 2026; a formal CMS application has not been submitted. The health plan may not begin regulated operations or offer Medicare Advantage coverage unless and until all required licenses, contracts and approvals are obtained.

About ECGI Holdings, Inc.

ECGI Holdings, Inc. (OTC: ECGI) is a publicly traded holding company focused on developing healthcare services and AI-enabled operational technology through its wholly owned Avanta Group business. ECGI’s primary healthcare strategy combines provider services, management infrastructure, benefits commerce and technology development.

About Avanta Group, Inc.

Avanta Group, Inc. is a California healthcare enterprise whose businesses encompass direct healthcare services, value-based care support, management services, healthcare technology, supplemental benefits commerce, health plan development and related properties. Its businesses include Avanta Health, LLC; Avanta MSO, LLC; Avanta Tech, Inc.; Avanta Mart, LLC; Avanta Health Plan, Inc.; and Avanta Properties City Parkway, LLC. Certain health plan activities remain subject to regulatory licensing and approval.

More information is available at https://avantanetwork.com/.

Forward-Looking Statements

This press release contains forward-looking statements, including statements concerning AI and automation development, provider and business integration, service expansion, regulatory applications and approvals, the proposed Series B control transfer and future operating performance. Such statements are based on current expectations and are subject to significant risks and uncertainties, including technology development and implementation, regulatory review, financing needs, execution and integration risks, competitive conditions and the ability to satisfy performance-based vesting milestones. Actual results could differ materially. The $100 million and $200 million revenue thresholds described above are contractual conditions and should not be interpreted as forecasts. Except as required by law, ECGI undertakes no obligation to update forward-looking statements.

For more information, please contact:
Jamie Steigerwald
jamie@ecgiholdings.com

Investor Relations, Media Relations and Corporate Communications
Investor Relations
ir@ecgiholdings.com

Media Relations
media@ecgiholdings.com

Corporate Communications
IBN.Ai
Austin, Texas
www.IBN.Ai
512.354.7000 Office
Editor@IBN.Ai

SOURCE: ECGI HOLDINGS, INC.