Insurer CNO Financial Group has purchased Web Benefits Design (WBD), a privately-owned online benefits administration firm, for $66m.

The purchase price includes an additional earn-out if certain financial targets are achieved. The acquirer plans to fund the transaction from holding company cash.

WBD provides a full-service, integrated employee benefits administration solution, which are distributed via a network of independent brokers and a direct sales force.

Additionally, its cloud-based platform offers companies with a suite of administration, compliance and communications solutions that can be customised to manage employee benefits programmes.

CNO Financial CEO Gary Bhojwani said: “WBD brings a leading-edge benefits technology platform and a proven track record of digital innovation to CNO.

“We expect this transaction to accelerate the growth of our worksite business, which has been expanding at a double-digit rate for the last four quarters.

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“CNO’s insurance products will now be available alongside WBD’s current carrier options to 1,000 employer group clients with more than 250,000 employees.

“The acquisition will also enable distribution of WBD’s solutions and our products through both our 375 dedicated worksite agents and WBD’s 200 affiliated brokers, providing considerable cross-sell opportunities.”

Deutsche Bank Securities acted as financial advisor to CNO Financial Group while Stifel, Nicolaus & Company served as financial advisor to Web Benefits Design.