Businessolver Receives Strategic Investment from Stone Point Capital to Accelerate Mission and Trajectory as Market Leader
WEST DES MOINES, Iowa, December 1, 2021 - Businessolver®, the market leader in SaaS-based benefits technology and services, today announced that funds managed by Stone Point Capital LLC have made a majority investment in the company. Stone Point, a leading private equity firm focused on investing in financial services, including the HR and benefits industry and human capital management spaces, joins existing investors Warburg Pincus and JMI Equity as Businessolver accelerates its growth on its path to market leadership. The investment not only brings a new perspective and investment from Stone Point, but also maintains consistency with all previous investing partners continuing their focus to scale the business.
Businessolver will continue to accelerate technology advancements such as the recent Personalized Navigation™ solution that levels up the consumer benefits experience by helping employees not only select the right benefits, but also activating their benefits for use throughout the year. Additionally, the new partnership allows Businessolver to bring in the best talent the industry has to offer, including attracting and retaining talent with deep benefits expertise to deliver the best possible service, expand their data science and engineering teams to continue their innovation with intelligent applications and increase their footprint across the U.S.
“The market and Stone Point’s strategic investment have confirmed what we have always known - that Businessolver’s focus on organic growth, commitment to excellence and passion for innovation, make us the market leader in the benefits technology space,” said Jon Shanahan, CEO and Founder of Businessolver. “This partnership with Stone Point, and commitment from existing investors, will further accelerate our ability to meet the needs of our customers and most importantly their people. That’s what matters, being a change agent within the health care ecosystem, by creating consumer-friendly technology and services that ensure employees have access to the benefits they need when they need them.”
In its 23rd year of business, Businessolver’s consistent commitment to product quality, process excellence and employee empowerment over the last two decades cannot be overstated. Businessolver has been providing solutions for benefits administration and engagement through its single-source technology alongside its clients, helping employers and organizations deliver on the complex benefits programs that are critical in recruiting and retaining the best talent, while managing the overall health care spend.
“We’re excited about the long-term opportunities within the HR and employee benefits industries and are thrilled to be partnering with Jon and the Businessolver team,” said Chuck Davis, CEO of Stone Point. “We look forward to sharing our longstanding experience in the industry to help accelerate Businessolver’s growth, while they maintain their deep roots in the HR community. We have watched Businessolver grow and deliver for years and are excited to be part of the cutting-edge benefits innovation that they bring to the industry.”
Businessolver’s recent innovation highlights that accelerated this investment include:
- Sofia®, Businessolver’s intelligent personal benefits assistant, which uses machine learning and natural language processing to answer employee questions in real-time through chat and phone. Sofia is proprietary to Businessolver and was developed in-house in 2017. She is not your standard chatbot, but rather was built based on more than seven years of Service Center transcripts and has maintained superior performance, including most recently a 92% resolution rate.
- MyChoice® Accounts, Businessolver’s proprietary consumer accounts platform, launched in January of 2020, administers the many consumer accounts provided by an employer such as FSA, HSA and Commuter and allows employees to manage those accounts from Businessolver’s single-source solution. One of the only consumer accounts platforms built within recent years, MyChoice Accounts is attributes-based which allows for superior flexibility to meet employers’ reimbursement account needs. It is one of the only systems to bring this into one platform, one card and one experience.
- Businessolver’s Personalized Navigation solution set launched in 2021 allows employees to activate on the important benefits programs provided by their employers to benefit their total well-being. With Personalized Navigation, Businessolver uses data inherent to its single-source platform and available through claims to direct employees to use a variety of resources such as EAP, telemedicine, provider guidance and care navigation. All in the same familiar place from which they enroll in their benefits.
“Over the past three and a half years of our partnership, Businessolver has established itself as a market-leading platform in the benefits administration market, with a unique focus on technology innovation and strong customer service,” said Brian Chang, Managing Director at Warburg Pincus. “We are excited to work with Stone Point and JMI Equity to further advance the company’s growth initiatives to disrupt the benefits technology market through strategic partnerships, market expansions, product innovations, and continued investment in deep benefits expertise.”
“Having been a partner in Businessolver’s growth since 2014, we have had the pleasure of seeing the company more than quadruple in size, and we know that there is even more room to expand,” said David Greenberg, General Partner at JMI Equity. “With its commitment to intentional growth and its organic roadmap for its products and people, we are confident that Businessolver will continue to prove its leadership position in the benefits technology space.”
Terms of the transaction will not be disclosed. William Blair & Company served as exclusive financial advisor to Businessolver.
Since 1998, Businessolver has delivered market-changing benefits technology and services supported by an intrinsic responsiveness to client needs. The company creates client programs that maximize benefits program investment, minimize risk exposure, and engage employees with easy-to-use solutions and communication tools to assist them in making wise and cost-efficient benefits selections. Founded by HR professionals, Businessolver’s unwavering service-oriented culture and secure SaaS platform provide measurable success in its mission to provide complete client delight.
Bridget Mortland, Head of Marketing