BenefitExpress in Schaumburg buys BenefitsConnect

Schaumburg-based BenefitExpress, which provides cloud-based software for employee benefits and health exchanges, Thursday said it acquired BenefitsConnect, an online enrollment business in Rancho Cordova, California.

Financial terms of the deal were not disclosed.

While each business will continue to operate in their current locations, BenefitsConnect will change its name to BenefitExpress, said BenefitExpress spokeswoman Kristy DelMuto.

"The focus moving forward will be on integrating these two companies and bringing additional services to the broker and employer clients," DelMuto said.

BenefitExpress provides software and services including benefit enrollment, management and administration and billing services along with a call center. BenefitExpress, which incorporated as a business called Benefit Express Services LLC in 2001, started in Oak Brook. It expanded and moved to Arlington Heights in 2007, and then moved to Schaumburg in 2012.

In March, LLR Partners completed a private equity investment in BenefitExpress to help support the company's growth plan. This acquisition represents its continued investment in growth and more effective benefits management.

After Thursday's announcement, the companies said Troy Underwood, CEO of benefits Connect, will stay during the transition and leave next month. BenefitExpress CEO Michael Sternklar will continue to lead the combined company, she said.

BenefitExpress, which has 170 employees, will gain about 70 employees from BenefitsConnect. No layoffs are planned, DelMuto said.