(Bloomberg) — Benefitfocus Inc., (Nasdaq:BNFT) the provider of software that helps employers offer insurance options to their staff, jumped the most since 2013 after Marsh & McLennan Cos. (NYSE:MMC) announced a deal to invest in the company.
Mercer, a consulting unit at New York-based Marsh & McLennan, acquired a 9.9 percent stake in the software seller, Benefitfocus Chief Executive Officer Shawn Jenkins said late Tuesday in a conference call. Benefitfocus rose 50 percent to 34.34 at 9:33 a.m. in New York Wednesday.
The deal will allow Mercer to expand its insurance exchange, which uses Benefitfocus’s technology to provide benefits such as life and disability coverage. Mercer’s investment injects $74.7 million in cash to fund the software provider’s growth, Benefitfocus Chief Financial Officer Milton Alpern said on the conference call.
See also: Exchange wants ancillary product partners.