Voya Financial acquires benefits administration company

Voya Financial Inc. announced Tuesday that it is acquiring Benefitfocus Inc., a cloud-based benefits administration company.

Voya said it is paying $10.50 per share for all of the outstanding shares of Benefitfocus, or approximately $570 million.

Benefitfocus works with health and benefits brokerages and consulting firms. After the transaction is complete, Voya will serve roughly 38 million individuals.

“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,” Heather Lavallee, president and CEO-elect of Voya Financial, said in a statement. “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."

Benefitfocus will remain a distinct business, “with continuity in the existing Benefitfocus management team,” according to the statement.