- Voya Financial to acquire Benefitfocus
- The deal is valued at $570m
- Benefitfocus shares jumped over 48% on the news
Shares of software company Benfitfocus (NASDAQ: BNFT) surged premarket Wednesday on the news after the close Tuesday that the business will be acquired by Voya Financial (NYSE: VOYA) in a $570 million deal.
The all-cash transaction will see Voya pay $10.50 per share inclusive of Benefitfocus debt and outstanding preferred shares.
Voya is a financial, investment, retirement, and insurance firm based in New York City that provides its clients with products, solutions, and technologies.
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The company said the deal accelerates its health and wealth solutions strategy, adding various benefits and administration capabilities. In addition, Voya revealed that the transaction will be immediately cash accretive to its adjusted operating earnings per share.
“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,” said Heather Lavallee, president and CEO-elect of Voya Financial.
“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.”
The deal is expected to be completed in the first quarter of 2023.
Benefitfocus shares closed Tuesday’s session at $6.99 per share. However, they have jumped to $10.37, up 48.35% following the announcement.