As per the terms of the agreement, Voya Financial will pay $10.5 per share for all common shares of the publicly-listed American cloud-based benefits administration technology company
Voya Financial, a health, wealth, and investment company listed on the New York Stock Exchange (NYSE), has signed a definitive agreement with Benefitfocus to acquire the latter in an all-cash deal worth around $570m.
As per the terms of the agreement, Voya Financial will pay $10.5 per share for all common shares of the NASDAQ-listed cloud-based benefits administration technology company.
Voya Financial president and CEO-elect Heather Lavallee said: “Our acquisition of Benefitfocus is an exciting opportunity to accelerate our workplace-centred 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.
“At the same time, Voya’s technology resources, digital capabilities, and operational expertise will add tremendous value to Benefitfocus as it seeks to accelerate its growth and delivery of world-class services to more clients and partners.”
Benefitfocus caters to brokerage and consulting firms in the health and benefits industry. Through its employer and health plan clients, the company is said to touch over 25 million lives on its platform.
Following the acquisition, Voya Financial expects to serve about 38 million clients, after including its own existing workplace customers.
Upon closing of the transaction, Benefitfocus will function as a distinct business under Voya Financial’s ownership, with continuity in the company’s existing management team.
Benefitfocus president and CEO Matt Levin said: “We are excited to become part of Voya – bringing Benefitfocus’ portfolio of innovative solutions and services to support the health and wellbeing of more customers through the creation of an end-to-end continuum of offerings across health, wealth and investment.”
“This transaction delivers significant and immediate value for our shareholders, broader opportunities for our associates, and strengthens our go-to-market offering with Voya’s platform of workplace-centred services and solutions.”
The deal, which is subject to Benefitfocus’ shareholders’ approval and customary conditions, is anticipated to close in Q1 2023.