Private benefit exchange Connecture, Inc., has acquired Chicago-based ConnectedHealth, LLC, a company that allows employees to shop for insurance benefits online, for $5 million in cash.
Connecture, Inc., says employees will have faster access and better choices for their personalized benefits because the acquisition will create an end-to-end solution and close gaps within its current services. It will also help the Wisconsin-based company expand its business into Chicago, a growing technology hub and the U.S.’s third largest city.
“This wasn’t really about ConnectedHealth being in Chicago,” says ConnectedHealth’s president Joe Donlan. “Over the last year or so we’ve been seeing that we have a lot of complementary services. At the end of the day, it just made a lot of sense.”
Donlan will now serve as Connecture’s senior vice president and broker solutions leader. ConnectedHealth CEO John Fiacco will become senior vice president of corporate and business development for Connecture, Inc.
Employers should expect a seamless transition from the acquisition, says Donlan.
“We’re hitting the ground running,” he says, adding the merger should increase the value of the two platforms. “Under one roof we have a solution set that can meet the needs of a very diverse workforce, including retirees and part-time employees.”
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