Benefitexpress, which is backed by LLR Partners, has acquired BenefitsCONNECT, a provider of benefits administration and online enrollment solutions. No financial terms were disclosed.
SCHAUMBURG, IL and RANCHO CORDOVA, CA – August 4, 2016 – benefitexpress, the leading middle market, cloud-based platform for employee benefits and health exchange services, today announced the acquisition of broker-centric benefits administration and online enrollment solution, benefitsCONNECT.
The acquisition extends both companies’ product roadmaps to include solutions for multiple client markets. benefitsCONNECT’s network of insurance brokers will have access to a solution for larger employers as well as services such as HSA/FSA, COBRA/Direct Bill and dependent audits. benefitexpress employers will garner additional value through more enhanced ACA capabilities, and the company’s broker partners will be able to take advantage of a broader solution for clients of all sizes.
“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,” said Michael Sternklar, CEO of benefitexpress who will remain CEO of the combined company. “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.”
In March 2016, LLR Partners completed a private equity investment in benefitexpress to build on existing momentum and help support the company’s growth plan. This acquisition represents the team’s continued investment in growth and dedication to enabling more effective benefits management.
“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,” said 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.”
Through a SaaS solution that integrates all benefits in a one-stop-shop, benefitexpress provides simplicity to complex plans and offers a custom experience to engage and educate employees while giving employers an ease of benefit management that is unmatched in market. benefitsCONNECT’s broker-centric solution electronically connects brokers, employers, employees, carriers and third-party administrators to further streamline the benefits enrollment and management experience.
Following the acquisition, the combined company’s clients will have access to the full suite of end-to-end solutions, including integrated ACA compliance to fulfill annual reporting and determine full-time employee equivalency and benefits eligibility, along with a range of existing services, including COBRA/Direct Bill services, reimbursement account administration, carrier bill reconciliation, total compensation statements, and a full service call center.