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July 14, 2020

Madison Dearborn strikes deal to buy Benefytt Technologies for $410m

By Verdict Staff

American private equity firm Madison Dearborn Partners (MDP) Funds has agreed to acquire health insurance technology company Benefytt Technologies for approximately $410m.

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2022: So far In Venture Capital

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The all-cash transaction is structured as a tender offer of $31 per share that is set to begin in coming days.

The tender offer price per share represents a 59% premium over the 30-day volume-weighted average price per share of Benefytt’s common stock through the close of trading on 10th of this this month.

Madison Dearborn financial and transaction services team managing director Vahe Dombalagian said: “Benefytt’s technology-driven model has positioned it well in the evolving Medicare market and we believe we can help Gavin and his team continue to advance Benefytt’s product offering and service model.”

Upon completion of the transaction, Benefytt will become a private company, substantially owned by the MDP Funds.

Benefytt’s management team, including CEO Gavin Southwell, is expected to continue to lead the company. It will also maintain its operations in Tampa, Florida.

Benefytt CEO and president Gavin Southwell said: “This transaction marks a new stage for the entire Benefytt team, and we look forward to moving ahead with a focus on continuing to offer innovative, technology-enabled services to the people and markets we serve.”

The acquisition is expected to close in the third quarter of this year. It is subject to the successful tender of a majority of the then outstanding shares of Benefytt’s common stock and the satisfaction of other customary closing conditions.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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