American private equity firm Madison Dearborn Partners (MDP) Funds has agreed to acquire health insurance technology company Benefytt Technologies for approximately $410m.

The all-cash transaction is structured as a tender offer of $31 per share that is set to begin in coming days.

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The tender offer price per share represents a 59% premium over the 30-day volume-weighted average price per share of Benefytt’s common stock through the close of trading on 10th of this this month.

Madison Dearborn financial and transaction services team managing director Vahe Dombalagian said: “Benefytt’s technology-driven model has positioned it well in the evolving Medicare market and we believe we can help Gavin and his team continue to advance Benefytt’s product offering and service model.”

Upon completion of the transaction, Benefytt will become a private company, substantially owned by the MDP Funds.

Benefytt’s management team, including CEO Gavin Southwell, is expected to continue to lead the company. It will also maintain its operations in Tampa, Florida.

Benefytt CEO and president Gavin Southwell said: “This transaction marks a new stage for the entire Benefytt team, and we look forward to moving ahead with a focus on continuing to offer innovative, technology-enabled services to the people and markets we serve.”

The acquisition is expected to close in the third quarter of this year. It is subject to the successful tender of a majority of the then outstanding shares of Benefytt’s common stock and the satisfaction of other customary closing conditions.