Maksim Labkouski
- Voya Financial (NYSE:VOYA) will acquire Benefitfocus (NASDAQ:BNFT) for $10.50 per share in an all-cash transaction valued at approximately $570M.
- Shares of BNFT surged 48.5% to $10.38 in aftermarket trading on Tuesday, while those of VOYA were flat.
- New York-based VOYA provides financial services to individuals, employers and professionals, including insurance and retirement plans.
- Charleston, S.C.-based BNFT caters to brokerage and consulting firms in the health and benefits industry through cloud-based software solutions.
- "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," the companies said in a statement.
- VOYA sees the deal to be immediately accretive to its adj. operating EPS.
- The deal's offer price of $10.50 per share represents a 48.9% premium to BNFT's Oct. 31 closing price of $7.05.
- BNFT will continue to operate as a distinct business under its existing management.
- The deal, which was approved by both companies' boards, is expected to be completed in Q1 2023.
- VOYA also separately announced Q3 results.