Benefitfocus Announces Closing of $80 Million Investment by BuildGroup LLC
June 08 2020 - 8:00AM
Benefitfocus, Inc. (NASDAQ: BNFT), the technology platform driving
rapid innovation for employers, health plans and consumers, today
announced it has closed the previously announced $80 million
preferred stock investment from BuildGroup LLC. BuildGroup is an
operator-led, permanent capital investment company for enhanced
software-as-a-service (SaaS) business models.
In conjunction with the closing, the
Benefitfocus Board appointed Lanham Napier as its lead independent
director. Mr. Napier has served as a company director since 2014.
He is Co-Founder and CEO of BuildGroup and was previously the CEO
of Rackspace, which he helped grow from a startup to $1.5 billion
in revenue and a global leader in the managed hosting industry.
During this growth period Mr. Napier was recognized by Forbes as
one of America’s Most Powerful CEOs 40 and Under and was named one
of the Top 100 Most Influential Executives by CRN.
Ray August, President and CEO of Benefitfocus,
commented, “This investment is very exciting news for Benefitfocus
and all of our stakeholders. Lanham has been an active member of
our board and BuildGroup’s financial commitment and business
expertise will further accelerate our full potential as the
benefits industry’s leading SaaS platform with a growing AI-driven
marketplace. In addition, this transaction substantially enhances
our financial flexibility and we have never been better positioned
to deliver on our mission to improve lives through personalized,
consumer-focused benefits.”
As previously announced, the company intends to
use the proceeds from the investment to accelerate ongoing
initiatives, including the potential reduction of debt, potential
acquisitions to extend the company’s market or technology
leadership and other general corporate purposes. Further details of
the preferred stock and related agreements will be filed on Form
8-K with the Securities and Exchange Commission today.
Mr. Napier said, “Through my board service over
the past six years I have developed a deep appreciation for the
opportunity Benefitfocus has to lead its market. We believe our
investment, coupled with our team’s operational expertise, will
help the company monetize the strong recurring revenue of its SaaS
offerings with a marketplace that leverages artificial
intelligence. For the over 25 million lives on the Benefitfocus
platform, this translates into high performance benefits plans and
reduced healthcare costs.”
About Benefitfocus
Benefitfocus (NASDAQ: BNFT) unifies the entire
U.S. benefits industry on a single technology platform to protect
consumers' health, wealth, property and lifestyle. Our powerful
cloud-based software, data-driven insights and
thoughtfully-designed services, enable employers, insurance
brokers, carriers and suppliers to simplify the complexity of
benefits administration and deliver a world-class benefits
experience. Learn more at www.benefitfocus.com, LinkedIn and
Twitter.
About BuildGroup
BuildGroup is the first operator-led, permanent capital
investment company for modern business models. Headquartered in
Austin, Texas, the firm invests in companies that include
SaaS-based subscription revenues, significant data assets that
leverage AI to create high volume and targeted offers, and
multifaceted platforms that serve large, connected networks of
buyers, sellers, users and partners. BuildGroup targets
fast-growing private companies and small-cap public companies
through PIPEs. For more information on BuildGroup, its investment
strategy and portfolio companies, visit www.buildgroup.com.
Safe Harbor Statement
Except for historical information, all of the
statements, expectations, and assumptions contained in this press
release are forward-looking statements. Actual results might differ
materially from those explicit or implicit in the forward-looking
statements. Important factors that could cause actual results to
differ materially include: risks related to the Company’s ongoing
transformation; volatility and uncertainty in the global economy
and financial markets in light of the evolving COVID-19 pandemic;
our continuing losses and need to achieve GAAP profitability and
generate sufficient cash to pay our debt and dividend obligations;
fluctuations in our financial results; our ability to maintain our
culture, retain and motivate qualified personnel; the immature and
volatile market for our products and services; risks related to
changing healthcare and other applicable regulations; risks
associated with acquisitions; cyber-security risks; the need to
innovate and provide useful products and services; our ability to
compete effectively; privacy, security and other risks associated
with our business; and the other risk factors set forth from time
to time in our SEC filings, copies of which are available
free of charge within the Investor Relations section of
the Benefitfocus website
at http://investor.benefitfocus.com/sec-filings or upon
request from our Investor Relations
Department. Benefitfocus assumes no obligation and does
not intend to update these forward-looking statements, except as
required by law.
Source: Benefitfocus, Inc.
Benefitfocus, Inc.843-981-8898pr@benefitfocus.com |
|
Investor Relations:Patti
Leahy843-981-8899ir@benefitfocus.com |
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