Castlight Health is acquiring Jiff to offer the most comprehensive health benefits platform in the industry, helping employers and employees manage their health benefits dollars more effectively. The combined company will serve more than 240 customers, including over 70 of the Fortune 500.
Castlight pioneered health care transparency, and today helps employees make better health decisions by guiding them to the right program, care and provider. Jiff, on the other hand, redefined the wellbeing industry with an exceptional, mobile-first user experience and the largest ecosystem of health partnerships available in the market. The combined platform will seek to improve every aspect of an employee's health experience: from staying healthy, to accessing care, to managing a condition.
"Despite all of the changes in healthcare that have happened and will come, one thing is constant: employers continue to provide healthcare benefits. Moreover, they care deeply that their employees engage in their benefits so that the returns on this huge investment are felt by all," Giovanni Colella, M.D., co-founder and current chief executive officer of Castlight Health, said in a statement. "This is a tremendous challenge, and we believe the combination of Castlight and Jiff is uniquely positioned to solve it."
In addition to having complementary technologies and client lists, Castlight and Jiff have established strong partnerships with major players focused on the health benefits industry. For example, Jiff has established successful channel referral relationships with Willis Towers Watson and Mercer, among others, while Castlight's strategic partnerships include Anthem and SAP. The combined company will be highly focused on leveraging each other's channel relationships to maximize growth and better fulfill these partners' respective goals.
The transaction is expected to close in the first half of 2017 following satisfaction of customary closing conditions, including approval from Castlight's stockholders with respect to the issuance of Castlight shares in the transaction. After that, Castlight's president and COO, John Doyle, will assume the role of chief executive officer of the combined company. Jiff's current CEO, Derek Newell, will become president of the combined company, responsible for sales and marketing, research and development, and professional services, and will report directly to John Doyle. Giovanni Colella will continue his service with Castlight in the role of executive chairman of the board of directors, focusing on deepening key partner and customer relationships. In addition, effective upon closing the transaction, two members of the current Jiff board of directors will be appointed to the Castlight board of directors and one of Castlight's current board members, Ann Lamont, will step down.
The combined company is expected to generate approximately $138 to $142 million in pro forma non-GAAP revenue for the full year 2017.