PlanSource and Vista Equity Ink Acquisition Deal

PlanSource wants to be the biggest and best at what they do. Since their start in 2002, they have helped nearly 4.5 million people with managing their health benefits but have no intention of stopping there. As part of that plan, they have recently put pen to paper and inked an acquisition deal with private investment firm Vista Equity Partners. The intent is to secure the capital the company needs to expand with the growing demand for their services.

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“This deal is a landmark moment for our company, and a clear validation of our strategy and business model,” said Dayne Williams, CEO of PlanSource. “Since our founding, our strategy mission has been to revolutionize the way benefits are bought, sold and managed. Vista’s investment and deep commitment to building and scaling world-class software companies takes us one step closer to making our vision a reality.”

As part of their commitment to creating a better benefits management system, PlanSource offers a cloud-based administration platform along with a full suite of technology-enabled services for benefits-shopping, enrollment, billing, compliance and coordination. Their aim is to streamline the process so that employers and employees can connect the right coverage to the right individual as simply as possible.

Susan Calvert, Human Resources Manager with mobile phone retailer Cellular Sales, stated that they partnered with PlanSource in 2009. “At that time, we only had around 150 employees and now, we have close to 5,000,” she said in 2016. “PlanSource has been a huge part of being able to handle that level of growth we’ve had – especially given with… number of states we’re in.”

The acquisition deal comes on the heels of a high-growth period of time for the company. In 2018, PlanSource experienced a 25 percent increase in annual recurring revenue and signed an additional 750 employers onto their benefits management platform. They also negotiated numerous partnerships with insurance carriers, brokers and technology-suppliers that enhance their product offerings and increases their exposure to new market audiences.

“We are thrilled to welcome PlanSource to the Vista Family,” said Robert F. Smith, Founder, Chairman and CEO of Vista Equity Partners. “Their reputation as a leader and innovator in the benefits technology arena is well-earned, and their solutions are helping companies simplify the important process of managing the benefit employees depend on. We look forward to partnering with Dayne and the leadership team to accelerate the company’s growth.”

With the support of Vista Partners, PlanSource intends to fast-track their product plans and build on the success of their strategic partnership programs. Key areas identified for development include real-time integrations with insurance-carriers, insightful analytics for all stakeholders, and intuitive tools for self-service, personalization and communication that clarify the benefits process for employees and HR teams.

While there may be a change of ownership, the company stated there would be no change in management. PlanSource will continue to operate independently and, with Vista’s support, will begin a new stage of growth. The acquisition deal is expected to be closed within the coming weeks.