US-based Voya Financial, which operates in the insurance, retirement and investments space, has reached an agreement to buy Benefitfocus in a cash deal valued at around $570m.

The deal will see Voya acquire all outstanding shares of Benefitfocus common stock for a price of $10.50 per share.

Benefitfocus is a cloud-based benefits administration technology company that caters to brokerage and consulting firms in the health and benefits industry.

Through the acquisition, Voya hopes to expand its workplace customer base to around 38 million.

As per the terms of the acquisition, Benefitfocus will continue to operate as a distinct business under Voya’s ownership.

Voya Financial president and CEO-elect Heather Lavallee said: “Our acquisition of Benefitfocus is an exciting opportunity to accelerate our workplace-centred strategy and increase our capacity to meet the growing demand for comprehensive benefits and savings solutions at the workplace.”

“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 well-being of their employees and members.”

Benefitfocus president and CEO Matt Levin said: “We are excited to become part of Voya – bringing Benefitfocus’ portfolio of innovative solutions and services to support the health and wellbeing of more customers through the creation of an end-to-end continuum of offerings across health, wealth and investment.”

Voya said the deal is immediately accretive to its adjusted operating earnings per share even before future revenue synergies are factored in.

Benefitfocus’s board of directors has approved the deal, which is expected to close in the first quarter of 2023.