TIAN RUIXIANG Holdings Ltd. ( TIRX ) , a China-based insurance broker, announced on Friday it is acquiring Ucare Inc. in an all-share deal worth $150 million, aiming to enhance its role in China's fast-growing health insurance sector.

Ucare runs the country's only cloud-based, AI-powered hospital and insurance risk management platform. Under the agreement, TIRX's subsidiary VitaCare Limited will issue more than 101 million Class A shares to Ucare's shareholders. The transaction is expected to close by July 2025.

Ucare's AI platform leverages a vast hospital database to help providers and insurers cut fraud, reduce administrative costs, and improve clinical accuracy. The company serves over 4,000 hospitals and has reportedly saved nearly $7 billion in healthcare costs as of late 2024. In its last fiscal year, Ucare reported $5.4 million in revenue and $0.6 million in profit.

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CEO Wei Zhu said the partnership would support further integration of generative AI into clinical pathways and insurance tools. TIRX Chairwoman Sheng Xu said Ucare's data and platform would help TIRX diversify revenue and strengthen product design.

Once finalized, Ucare will operate as a wholly owned unit of VitaCare. Part of the share release is tied to Ucare meeting a revenue target of 150 million Chinese Yuan (around $20.82 million) within three years.

The acquisition aligns with ongoing reforms in China's health insurance system and reflects a broader industry trend toward AI-driven solutions that merge insurance and care delivery.

Related ETFs: Global X Telemedicine & Digital Health ETF , iShares MSCI China ETF .

Price Action: TIRX shares are trading higher by 38.8% to $2.54 premarket at last check Friday.

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