Insurtech FINEOS has reached an agreement to purchase software-as-a-service company Limelight Health for $75m.
Limelight Health provides quoting, rating and underwriting solutions for group and voluntary employee benefits in North America.
The unified company is expected to offer an end-to-end SaaS core product suite for the global life, accident, and health industry. It will include quote, rate and underwrite through to billing, policy administration, absence and claims management.
FINEOS CEO Michael Kelly said: “This acquisition delivers more product options for our clients as they accelerate their digital transformations and reduce their reliance on legacy core systems.
“Together we are over 1,000 people with our total focus on helping life, accident, and health carriers to serve their clients and customers with superior insurance technology.”
The companies have already built integrations between their products to facilitate joint go-to-market and system delivery. Limelight Health’s rating, underwriting, and quoting solutions will be available as an optional component of FINEOS AdminSuite.
The deal will support deeper integration to provide a seamless user experience to the clients.
Limelight HealthCEOJason Andrew said: “This acquisition combines two of the most modern systems in the market today to offer customers a flexible SaaS platform that keeps them future-ready.
“Joining with FINEOS makes the most of our extensive experience in group benefits and our strong customer base in the US to support our expansion into individual insurance and global markets. Our customers will be able to depend on our combined team with a strong presence in North America, Europe, and Asia.”
The deal is subject to customary closing conditions and is expected to close soon.