Cloud-based benefit provider benefitexpress has acquired the broker-centric benefits administration and online enrollment solution, benefitsCONNECT.
Under the deal, benefitsCONNECT’s network of insurance brokers will have access to a solution designed for larger employers, which include services such as HSA/FSA, COBRA/direct bill and dependent audits.
Companies using benefitexpress services will have access to more ACA capabilities as well. Plus, the company’s broker partners will be able to take advantage of a broader solution for clients.
Details of the deal were not made available to the press.
‘The right time and opportunity’
“The benefitsCONNECT team has built a market-leading solution to streamline benefits management for small and middle market companies, and remained loyal to its focus on the broker channel,” says Michael Sternklar, CEO of benefitexpress.
He adds, “This was the right time and opportunity to reinforce our commitment to invest in growth and provide our combined client and employee base a diverse suite of services for their respective markets.”
Sternklar will remain CEO of the combined company.
“Benefitexpress and benefitsCONNECT are a natural fit, each additive to the other’s solution set and expertise. The companies also share a common culture rooted in exceptional client service and deep domain knowledge,” says Troy R. Underwood, CEO of benefitsCONNECT. “Both companies are uniting with a clear vision. We are on the continual pursuit to deliver high-performance technology and expand our service offerings. This acquisition, coupled with the talented and dedicated leadership of both organizations, will allow us to embark on the next chapter of our growth story.”
The acquisition deal was put in motion in March 2016 when private equity firm LLR Partners invested in benefitexpress to fuel the company’s growth plan.
Once the acquisition is finalized, the combined company’s clients will have access to a suite of end-to-end solutions including integrated ACA compliance to fulfill annual reporting and determine full-time employee equivalency and benefits eligibility. This also includes services such as COBRA/Direct Bill services, reimbursement account administration, carrier bill reconciliation, total compensation statements, and a call center, according to a statement.
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