Shearman & Sterling represented BuildGroup LLC in connection with its purchase of approximately 1.78 million shares of Series A preferred stock of Benefitfocus, Inc. (NASDAQ: BNFT) in a private placement for an aggregate purchase price of approximately $80 million. BuildGroup CEO A. Lanham Napier is a long-time member of Benefitfocus’ Board of Directors. The transaction was approved by a disinterested special committee of Benefitfocus’ Board of Directors advised by J.P. Morgan. Benefitfocus will use the proceeds from this transaction for general corporate purposes, including potential acquisitions and repayments of debt.
BuildGroup is an operator-driven, permanent capital investment company that invests in Modern Business Models, companies that have engaging SaaS offers with subscription revenues, significant data assets, and multi-sided marketplace platforms serving large and connected networks. It invests in both smaller growth companies that seek to transform industries and small cap public companies that can benefit from its permanent capital, Modern Business Model expertise, and operator experience.