Madison Dearborn Partners, the Chicago-based private equity firm, isn’t a major investor in the healthcare market, especially compared with some other firms, but it did announce a new acquisition in July. The private equity firm purchased Benefytt Technologies, Inc. (NASDAQ: BFYT) for $420.7 million. Madison Dearborn paid $31 cash per share (13.57 million shares), a 59% premium over the 30-day volume-weighted average price per share of Benefytt’s common stock through the close of trading on July 10, 2020.
Benefytt Technologies develops and operates private e-commerce health insurance marketplaces, purchaser engagement platforms, agency technology systems and insurance policy administration platforms. The company offers a variety of health insurance plans through its online marketplace, including Medicare-related plans. Benefytt Technologies reported EBITDA of $44.7 million and revenues of $336 million.
Following the completion of the transaction, Benefytt will become a private company, substantially owned by the MDP funds. Benefytt’s management team, including its CEO, is expected to continue to lead the company. The company plans to maintain its operations in Tampa, Florida.
Madison Dearborn last announced a healthcare deal a little over two years ago, according to DSO. In June 2018 it acquired Alcami Corporation for an undisclosed sum from Ares Capital Corporation. Alcami Corporation is a fully integrated end-to-end contract development and manufacturing organization (CDMO) for the pharmaceutical and biotechnology industries.