Benefitfocus’ $80 Million Private Placement


Shearman & Sterling represented BuildGroup LLC in the transaction.

BuildGroup LLC executed its purchase of approximately 1.78 million shares of Series A preferred stock of Benefitfocus, Inc. in a private placement for an aggregate purchase price of approximately $80 million.

BuildGroup CEO A. Lanham Napier is a long-time member of Benefitfocus’ Board of Directors. The transaction was approved by a disinterested special committee of Benefitfocus’ Board of Directors advised by J.P. Morgan.

Benefitfocus will use the proceeds from this transaction for general corporate purposes, including potential acquisitions and repayments of debt.

Benefitfocus, Inc. (NASDAQ: BNFT) is the technology platform driving rapid innovation for employers, health plans and consumers

BuildGroup is an operator-driven, permanent capital investment company that invests in Modern Business Models, companies that have engaging SaaS offers with subscription revenues, significant data assets, and multi-sided marketplace platforms serving large and connected networks. It invests in both smaller growth companies that seek to transform industries and small cap public companies that can benefit from its permanent capital, Modern Business Model expertise, and operator experience.

Shearman & Sterling represented BuildGroup with Christopher Forrester (Picture), Larry Crouch, Emma Maconick, Bill Nelson, Yian Huang, Yeonsue Kim, Scott Lucas, Marc Elzweig, and Austin Jones.

Involved fees earner: Larry Crouch – Shearman & Sterling; Marc Elzweig – Shearman & Sterling; Christopher Forrester – Shearman & Sterling; Yian Huang – Shearman & Sterling; Austin Jones – Shearman & Sterling; Yeonsue Kim – Shearman & Sterling; Scott Lucas – Shearman & Sterling; Emma Maconick – Shearman & Sterling; Bill Nelson – Shearman & Sterling;

Law Firms: Shearman & Sterling;

Clients: BuildGroup;

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Author: Ambrogio Visconti