CHARLESTON, SC, April 04, 2022 (GLOBE NEWSWIRE) — Benefitfocus, Inc. (NASDAQ: BNFT) (“Benefitfocus” or the “Company”), today announced that it has entered into a cooperation agreement with Indaba Capital Management, LP (“Indaba”), which owns approximately 11.8% of the Company’s outstanding shares, making it one of the Company’s largest common shareholders.
Under the terms of the agreement, Benefitfocus has appointed Alexander Lerner, an investment partner at Indaba, to the board of directors, effective immediately, and has agreed to include Mr. Lerner in its list of recommended candidates for election. at the company’s 2022 annual meeting of shareholders. . Mr. Lerner will serve as Co-Chair of the Nominating and Governance Committee and the Strategy and Finance Committee of the Board of Directors. The agreement includes provisions regarding voting, standstill restrictions and other matters.
In addition, director Francis J. Pelzer V has decided to step down from his position on the board, effective immediately. The Company previously announced Mr. Pelzer’s intention to retire from the Board. Following the addition of Mr. Lerner and the departure of Mr. Pelzer, the size of the Board of Benefitfocus will remain at nine directors.
Benefitfocus Independent Chairman of the Board, Doug Dennerline, said, “We welcome Alex to our Board of Directors and look forward to his insights and insights as we continue to focus on maximizing shareholder value. Dennerline added: “We are grateful for Frank’s significant contributions as a director since 2013. We wish him well in his future endeavours.
“Benefitfocus is a solid company with best-in-class benefits administration software solutions,” said Lerner. “I look forward to working closely with management, the board committees I serve on and the full board to achieve our shared goals of creating value for all Benefitfocus shareholders.
Mr. Lerner is currently an investment partner at Indaba. Mr. Lerner joined Indaba in 2010 and, after graduating from business school in 2014, joined Indaba and was elected a partner in 2016. Prior to Indaba, Mr. Lerner was an analyst in the Mergers & Acquisitions group at Lazard Ltd. Mr. Lerner holds an MBA and BA from Stanford University.
About Benefitfocus Benefitfocus (NASDAQ: BNFT) unifies the entire benefits industry with innovative technology solutions that bring efficiency, savings and simplicity to benefits administration. Our powerful cloud-based software, data-driven insights, and carefully designed services help employers, insurance brokers, health plans, and providers navigate the complexity of enrollment and benefits commitment, while facilitating access to health, wealth and lifestyle products through a world class. benefit from the experience. Our mission is simple: improving lives with benefits.
Safe Harbor Statement Except for historical information, all statements, expectations and assumptions in this press release are forward-looking statements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially include: our ability to maintain our culture and to recruit, onboard and retain qualified personnel, including on our board of directors; our need to achieve GAAP profitability; fluctuations in our financial results; our ability to compete effectively and execute our growth strategy; market developments and opportunities; the need to innovate and provide useful products and services; risks related to changes in healthcare and other applicable regulations; the immature and volatile nature of the market for our products and services; privacy; security and other risks associated with our business; growth management; volatility and uncertainty in the global economy and financial markets in light of developments in the COVID-19 pandemic and the war in Ukraine; and other risk factors set forth from time to time in our filings with the SEC, copies of which are available free of charge in the Investor Relations section of the Benefitfocus website at http://investor.benefitfocus.com /sec-filings or upon request from our Investor Relations department. Benefitfocus undertakes no obligation and does not intend to update these forward-looking statements, except as required by law.
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