Benefits company sells to software maker
A local company that administers benefits services has been acquired by a maker of cloud-based benefits and HR software.
Orlando, Florida-based, PlanSource, which has an office in Ada, said today it acquired Ada-based Next Generation Enrollment.
Terms of the deal were not disclosed.
The Next Generation brand will be “folded into PlanSource,” and there’s a transition plan for the integration but no “exact timetable,” said Bill Fryman, a PlanSource spokesperson.
"We do not plan for any layoffs," Fryman said.
PlanSource CEO Dayne Williams said the acquisition will provide the companies’ clients with a “complete benefits offering,” using a single stream of software for benefits shopping, enrollment, billing, compliance and administration.
“We’ve worked with Next Generation Enrollment for many years, and I have always admired their focus on customer service and ability to give employees a great benefits experience,” Williams said.
In 2011, Next Generation partnered with PlanSource to replace its proprietary benefits enrollment system and has since been a reseller. The companies have more than 300 clients in common.
Next Generation Enrollment Founder and CEO Bradley Taylor called the acquisition “a big win.”
“We have always focused on the employee experience,” Taylor said. “Together, PlanSource and Next Generation Enrollment have the tools, software and services to help organizations empower their employees with a great benefits experience.”
Period of growth
PlanSource acquired a benefits software provider, ClearBenefits, in early 2015.
The acquisition of Next Generation Enrollment follows an extended period of growth for PlanSource, including a capital infusion of $70 million, double-digit revenue growth and the formation of multiple strategic partnerships with insurance carriers and technology companies.
Next Generation Enrollment, founded in 2004, also has offices in Virginia and Nevada.
The company offers services to help automate the process of employee benefits administration: benefits outsourcing; call centers; ACA services; billing reconciliation and payment; employee communications; dependent eligibility audits; and COBRA and health care account administration.
It has 900 clients ranging from 50 to 35,000 employees.
In 2016, it was named an Inc. 5000 fastest-growing private company, marking the third time it has been featured by Inc.
PlanSource also has offices in California, Colorado, Minnesota, Nevada, South Carolina, Utah and Virginia.
By offering software for benefits administration, insurance exchanges and human capital management, PlanSource’s cloud-based technology serves almost 10,000 employers and 3.5-million consumers.