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Mergers & Acquisitions

Limelight Health acquired by FINEOS for $75 million

August 19, 2020

Dublin-based insurtech business FINEOS has acquired Limelight Health for $75 million.

FINEOS plans to expand its product offering with the acquisition of Limelight Health, a US-based provider of quoting, rating, and underwriting solutions for group and voluntary employee benefits.

LimeLight Health, an insurtech software company, based in San Francisco, expanded its operations to Des Moines in July of 2018. Last year, the company raised $33.5 million in series C funding, led by Principal Financial Group.

“This acquisition combines two of the most modern systems in the market today to offer customers a flexible SaaS platform that keeps them future-ready,” said Jason T. Andrew, CEO of Limelight Health in an announcement. “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. 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.”

Together, the two companies have about 1,000 employees, according to FINEOS.

“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,” said Michael Kelly, CEO of 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.”

Previous coverage

Limelight Health raises $33.5 million in Series C funding -Jan. 17, 2019

Scouting Report: Limelight Health coming to Des Moines –July 23, 2018

Tags: Fineos InsurTech Limelight Health

Limelight Health acquired by FINEOS for $75 million | Clay & Milk

A central Iowa ag-tech accelerator has secured more backers and finally has a name. The Greater Des Moines Partnership first announced the accelerator last year, naming four initial investors. On Monday, the Partnership said the program will be called the "Iowa AgriTech Accelerator" and named three new investors. The new investors include Grinnell Mutual, Kent Corp. and Sukup Manufacturing, all Iowa companies. They join investors Deere & Co., Peoples Co., Farmers Mutual Hail Insurance Co. and DuPont Pioneer. Each investor has agreed to put up $100,000 for the first year of the accelerator. Startups entering the program will receive $40,000 in seed funding in exchange for 6 percent equity. Tej Dhawan, an angel investor and local startup mentor, is serving as interim director until the AgriTech Accelerator names a permanent leader. Dhawan held a similar role with the GIA before Brian Hemesath was named as managing director. As interim director, Dhawan said his main job includes hiring the accelerator's executive director, establishing a business structure and initial recruiting for the first cohort. The accelerator will place few filters, such as location and product, on the applicant pool, Dhawan said. "When you’re seeking innovation, innovation can come from every corner of the world so why restrict ourselves," he said. One area the the AgriTech Accelerator won't recruit from is biotech. For its first cohort, the AgriTech Accelerator will work out of the GIA's space in Des Moines' East Village, Dhawan said. A future, permanent home is still to be decided. The accelerator's program will host startups from mid-July through mid-October, ending with an event connected to the annual World Food Prize. The GIA, which the AgriTech Accelerator is based on, also ends with presentations at an industry event. The accelerator has also started lining up a mentor pool. The Iowa Corn Growers Association, Iowa Soybean Association and the Iowa Pork Producers Association have agreed to provide mentors, as has Iowa State University. While the AgriTech Accelerator is loosely based off of the GIA, it will differ in its business structure, Dhawan said. The GIA runs through a for-profit model for both operations and its investment fund. The AgriTech Accelerator will have a nonprofit model for its operations and a for-profit setup for its fund. Dhawan said the nonprofit model is being used so the accelerator can better work with other nonprofit partners, such as trade associations. "These are all organizations that are nonprofits and can be amazing stakeholders without ever having to be investors in the accelerator," he said. "It becomes easier to work with trade associations in their nonprofit role when we are also a nonprofit." When it's up and running, the AgriTech Accelerator would be one of a handful of ag-focused startup development programs in Iowa. Others include the Ag Startup Engine out of Iowa State University and the Rural Ventures Alliance from Iowa MicroLoan. Matthew Patane is the managing editor and co-founder of Clay & Milk. Send him an email at mpatane@clayandmilk.com.

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