Aetna to Acquire Insurance Exchange Technology Provider bswift
HARTFORD, Conn.--(BUSINESS WIRE)-- Aetna (NYSE: AET) today announced that it has entered into an agreement to acquire privately held bswift, which provides a technology platform that offers a retail shopping experience for health insurance exchanges and employers nationwide. Additionally, bswift offers benefits administration technology and services to employers.
The purchase price is approximately $400 million, which Aetna expects to finance with available resources. The transaction is subject to customary closing conditions, including Hart-Scott-Rodino antitrust regulatory approval. The acquisition is expected to close before the end of the year. As financed, the transaction is expected to be neutral to 2014 and 2015 operating earnings per share.
“Bswift’s consumer-friendly technology for benefits shopping and administration is an excellent fit with our proprietary exchange strategy,” said Mark T. Bertolini, Aetna chairman, CEO and president. “With more employers giving employees their choice of benefits via private exchanges, bswift’s technology platform will provide Aetna with the capability to deliver a new private-exchange offering for employers of all sizes where the focus is on helping people easily choose a plan that’s right for them and their families.”
Dijuana Lewis, Aetna’s executive vice president for Consumer Products and Enterprise Marketing, added, “Selecting a health plan is an important decision and bswift’s consumer shopping, buying, enrolling and decision-support features will help simplify what can be a confusing experience. This acquisition will help Aetna advance our consumer vision to transform the health benefits industry to a retail model that is consumer-centric, affordable and convenient.”
The software and services provided by bswift help streamline benefits, HR and payroll administration for employers and health insurance exchanges nationwide. Bswift’s technology platform includes buying assistance and education features to help people make informed and personalized benefits choices, including an “Ask Emma” interactive decision support tool.
“We at bswift are thrilled to become a part of Aetna at such a pivotal time in the transformation of the health care system. Together, bswift and Aetna can contribute to more affordable health care by engaging, educating and empowering consumers to make value-based decisions,” said bswift CEO Rich Gallun. “Aetna will help expand the reach of our technology and benefits services with a goal of creating a true consumer marketplace for health care. We look forward to continuing the growth of our core business with employers, brokers, carriers and other organizations, in addition to adding more business by working with Aetna.”
Based in Chicago, bswift was founded in 2000 and has approximately 380 employees. Bswift has experience in handling public, private and broker exchanges and serving employer groups of all sizes. Bswift is currently owned by its employees and numerous investors, including Great Hill Partners, a private equity firm.
Bswift will operate as a separate business within Aetna under its existing leadership structure.
Aetna is one of the nation's leading diversified health care benefits companies, serving an estimated 46 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities, Medicaid health care management services, workers' compensation administrative services and health information technology products and services. Aetna's customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com and learn about how Aetna is helping to build a healthier world.
Based in Chicago, bswift offers software and services that streamline benefits, HR and payroll administration for employers and exchanges nationwide. Bswift’s state-of-the-art cloud-based technology and outsourcing solutions and Springboard Marketplace exchange platform significantly reduce administrative costs and time-consuming paperwork, making life easier for administrators and millions of consumers who enroll in benefits with bswift. For more information, visit www.bswift.com and check out the bswift blog at www.bswift.com/blog.