(Image source: FINEOS homepage.)
FINEOS Corporation (Dublin), a global market provider of core systems for life, accident and health insurance, has entered into an agreement to acquire Limelight Health (San Francisco), a North American provider of quoting, rating and underwriting solutions for group and voluntary employee benefits founded in 2014, for $75 million US. The companies’ complementary solution sets combine to create an end-to-end SaaS core product suite from quote, rate and underwrite through to billing, policy administration, absence and claims management for the global life, accident, and health industry.
“We’re delighted to welcome the Limelight Health team and their clients to FINEOS, and we look forward to accelerating our combined growth for the benefit of all of our clients, people and partners,” comments Michael Kelly, CEO, FINEOS. “This acquisition delivers more product options for our clients as they accelerate their digital transformations and reduce their reliance on legacy core systems. Together we are over 1,000 people with our total focus on helping life, accident, and health carriers to serve their clients and customers with superior insurance technology.”
“The North American employee benefits industry is undergoing tremendous change which is accelerating due to the competitive and regulatory environment as well as the constant advance of technology capabilities,” adds Kelly. “Limelight Health is a rapidly growing Silicon Valley InsurTech with strong roots and competence in the employee benefits industry. They have a collaborative and inclusive culture with a powerful product that has been selected and deployed with leading Tier 1 North American carriers. They are aligned with our FINEOS culture, market focus and technology platform, and we are excited to combine with the Limelight Health team to accelerate our combined growth in North America and globally.”
Complementary Solutions, Compatible Culture
Limelight Health CEO Jason T. Andrew characterizes the acquisition as combining two of the most modern systems in the market today to offer customers a flexible SaaS platform that keeps them future-ready. “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,” Andrew says. “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.”
Limelight Health solutions are designed to streamline and automate the sales and underwriting functions for group benefits insurers, enabling carriers to win more business with faster, more accurate proposals and an online broker interface. FINEOS reports that the suite of products for rating, underwriting, and quoting will be available as an optional component of FINEOS AdminSuite, while continuing to be available to the market as a standalone SaaS product solution which readily integrates with third-party and legacy core solutions.
Building on an Existing Relationship
FINEOS and Limelight Health have already built integrations between their products to enable joint go-to-market and system delivery to meet their clients’ needs. The acquisition will enable deeper integration and make it even easier to do business with the unified company, according to a FINEOS statement. The company says its objective is to provide a strong and seamless user experience to everyone inside and outside the carrier’s business operations, making the FINEOS Platform an even more attractive offering to the employee benefits industry.
The transaction is subject to customary closing conditions and is expected to complete quickly. FINEOS says that as it works with Limelight Health to integrate the business over the coming months, its priority will be to continue to operate on a business-as-usual basis in order to meet customer needs.