Insurance technology provider Fineos agreed on Tuesday to acquire US-based employee benefits software producer Limelight Health in a $75m deal that will allow several corporate investors to exit.
Limelight’s cloud-based platform automates quoting, rating and underwriting for insurers offering employee benefits in order to streamline operations and improve accuracy. Its software will remain available as an individual product but its features will also be integrated into Fineos’ AdminSuite offering.
The deal follows more than $43m in funding for Limelight, which raised $3m from MassMutual Ventures and Axa Strategic Ventures – on behalf of insurance firms Massachusetts Mutual and Axa – and existing investor LaunchPad Digital Health in its 2015 series A round.
MassMutual Ventures led the company’s $7m series B round in 2017, investing with Axa Strategic Ventures and Wanxiang Healthcare Investments, a subsidiary of automotive component manufacturer Wanxiang, as well as Portag3 Ventures and Plug and Play Ventures.
The company added $33.5m in a January 2019 series C round led by insurance and financial services group Principal Life that included MassMutual Ventures, Axa Venture Partners, Wanxiang Healthcare Investments and Launchpad.
Aflac Ventures and Transamerica Ventures also took part in the 2019 round, as representatives of insurance providers Aflac and Transamerica, while financial services firm Wells Fargo invested through Wells Fargo Strategic Capital.
Jason T. Andrew, chief executive of Limelight, said: “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 two companies share similar collaborative values, which will assist us in rapidly and successfully integrating.”
