Voya to buy Benefitfocus in $570 million deal, Benefitfocus stock skyrockets

Benefits manager Voya Financial
VOYA,
+0.22%
on Tuesday said it agreed to acquire Benefitfocus
BNFT,
-0.85%,
a cloud-based benefits administration tech platform, in a $570 million deal. Shares of Benefitfocus rocketed 47% higher, to $10.28, in after-hours trade. The move, Voya said, would hasten its growth in “health and wealth solutions,” leading to a combined company that would serve roughly 38 million people. Under the deal terms, Voya will acquire all outstanding common shares of Benefitfocus for $10.50 per share in an all-cash transaction priced at around $570 million. The deal is expected to close in the first quarter of next year. Shares of Benefitfocus, which serves brokerage and consulting firms in the health and benefits industry, closed at $6.99 on Tuesday.