Voya Financial, a health, wealth and investment company, is to acquire Benefitfocus, a cloud-based benefits administration technology company that serves employers, health plans and brokers.
Under the terms of the agreement, Voya will acquire all outstanding shares of Benefitfocus common stock for $10.50 per share in an all-cash transaction valued at approximately $570m, inclusive of Benefitfocus debt and outstanding preferred shares.
Benefitfocus serves the leading brokerage and consulting firms in the health and benefits industry and, through its employer and health plan customers.
Voya provides products, solutions and technologies that are designed to enable a better financial future for its clients, customers and society.
Combined with its own existing workplace customers, Voya will now serve approximately 38 million individuals or roughly one in 10 Americans following completion of the acquisition.
Voya said it recognises the importance of maintaining and expanding the freedom of choice that employers and intermediary partners have today when selecting the benefit options that are right for their employees and clients.
Benefitfocus will operate as a distinct business under Voya’s ownership, with continuity in the existing Benefitfocus management team and a reaffirmed commitment to Benefitfocus’ broker, advisor, and carrier relationships.
Heather Lavallee, president and CEO-elect, Voya Financial, said, “Our acquisition of Benefitfocus is an exciting opportunity to accelerate our workplace-centered strategy and increase our capacity to meet the growing demand for comprehensive benefits and savings solutions at the workplace.
“Benefitfocus’ exceptional talent, strong capabilities, and extensive reach across the benefits industry will expand Voya’s ability to deliver innovative solutions for employers and health plans, and help improve the financial, physical, and emotional wellbeing of their employees and members.”
Earlier this month, Pasito, an employee benefits tech startup, raised $3.25m in seed funding to simplify health and wealth benefits.
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