NU Online News Service, Nov. 14, 2:35 p.m. – SoftNet Systems Inc., San Francisco, a failed, publicly traded Internet service provider, has completed using much of its remaining cash to acquire Independence American Holdings Corp. from Independence Holding Company, Stamford, Conn., for $32 million.

The companies announced the deal in July.

Independence American, formerly known as First Standard Holdings Corp., owns two subsidiaries that reinsure group life plans, health maintenance organizations and self-funded health plans.

Now that SoftNet owns Independence American, SoftNet will call itself American Independence Corp. and turn itself into an insurance holding company, Independence Holding says. American Independence will trade on NASDAQ under the symbol AMIC.

Independence Holdings will own 19.9% of the outstanding American Independence stock, and its employees will run the American Independence insurance operations.

The deal has generated a $4.6 million gain for Independence Holding and given it a chance to share in any profits that American Independence might earn, Independence Holding says.

Independence Holding continues to own and run two other insurance companies, Standard Security Life Insurance Company of New York and Madison National Life Insurance Company Inc. Standard Security sells employer medical stop-loss coverage, long-term and short-term disability insurance, and group life and health coverage. Madison Life sells group life insurance, group disability insurance, employer medical stop-loss coverage, credit life and disability insurance, and individual life insurance.