Brookfield-based health insurance software developer Connecture Inc. has acquired Chicago-based benefits technology firm ConnectedHealth LLC.
ConnectedHealth has developed an online consumer platform used to shop for personalized health insurance and benefits. Connecture makes web-based information systems used to create health insurance marketplaces for the consumer that recommend the best insurance plan based on an individual’s preferences, health status, preferred providers, medications and expected out-of-pocket costs. The acquisition will allow the companies to combine their technologies into one solution that meets some openings in the market.
John Fiacco, chief executive officer of ConnectedHealth, will become part of the Connecture management team as senior vice president of corporate and business development. ConnectedHealth executive Joe Donlan will also be part of the management team at Connecture, as senior vice president and broker solutions leader. ConnectedHealth will be rebranded as Connecture and the company will maintain a corporate presence in Chicago, a Connecture spokesperson said.
“We’re very enthusiastic about the synergies between our two organizations and the ability we now have to deliver a full end-to-end engagement solution, which has been missing in today’s benefits marketplace,” said Jeff Surges, Connecture’s CEO. “Together, we will offer a comprehensive solution, featuring robust benefits administration tools, that meets the changing needs of anyone involved in providing benefits to employees and consumers, regardless of their size or organizational complexity.”
Terms of the acquisition, including any employee impact, were not disclosed. A Connecture spokesperson released the following statement in response to questions about the integration:
“Over the past few years, both companies have built strong product and customer relationships. Connecture has been a part of many acquisitions over the years and is well-suited to integrating our new employees and products in a way that minimizes disruption and ensures the market reaps the benefits of the combination.”
Connecture last month finalized a $52 million equity investment from Francisco Partners, a San Francisco, California-based private equity firm. Also in May, the company reported it widened its first quarter losses and eliminated its executive vice president of sales & marketing position.