The acquisition was part of Madison Dearborn’s initiative to invest in potential strategic alternatives

Madison Dearborn

Madison Dearborn completes acquisition of Florida-based health insurance distributor. (Credit: Benefytt Technologies, Inc.)

Chicago-based private equity firm Madison Dearborn Partners has completed the previously announced acquisition of Benefytt Technologies, a Florida-based insurtech and health insurance distributor.

Madison Dearborn agreed to acquire the insurtech in last month in an all-cash transaction at $31 per share. As per the deal, Madison Dearborn had acquired nearly 95.2% of the outstanding shares in Benefytt Technologies. 

Madison Dearborn financial & transaction services managing director Vahe Dombalagian said: “In this ever-changing market for Medicare-related plans and services, Benefytt’s approach offers consumers a highly personalised and accessible enrolment experience.  

“We are excited to build on Benefytt’s technology-driven model and support Gavin and the rest of the management team as they continue to lead Benefytt’s strategic transformation and product diversification.” 

Benefytt will no longer trade on the Nasdaq Global Select Market 

As the deal has now been closed, Benefytt has now become a private company and will no longer trade on the Nasdaq Global Select Market 

The private equity firm stated that Benefytt will retain its brand name and management including the president and CEO Gavin Southwell and will build upon its tech-first mission to help consumers connect with Medicare and other health and life insurance products.  

The company will continue its service and the company’s headquarters will remain in Tampa, Florida.  

Madison Dearborn completed the transaction through its own funds MDP Funds, a fund created last year to explore, review and evaluate a multitude of potential strategic alternatives for the company. 

Southwell said: “Today’s closing is an important milestone in Benefytt’s ongoing work to become a premier health insurance technology company. As we enter this next phase, the entire Benefytt team looks forward to drawing upon Madison Dearborn’s deep expertise in the insurance technology and health care industries to drive our transformation strategy forward.” 

While, Weil, Gotshal & Manges served as legal advisor and BofA Securities acted as exclusive financial advisor to Benefytt, Kirkland & Ellis served as legal advisor and SunTrust Robinson Humphrey acted as the financial advisor to MDP Funds.