In a deal designed to boost The Hartford’s growth in the small and midsized employer segment, the Connecticut-based insurer announced a deal to acquire Equitable’s Employee Benefits business, focusing on flexible non-medical benefits.

According to a media statement, as part of the definitive agreement The Hartford will also obtain Equitable’s Employee Benefits technology, enhancing employee, employer and broker experiences “with unified digital capabilities and real-time API integration.”

Financial terms of the deal were not disclosed but The Hartford said the deal would bring roughly $500 million in premium.

Equitable’s Employee Benefits portfolio includes group life, disability, paid family and medical leave and supplemental health products, as well as dental and vision.

Expected to close in the fourth quarter, the deal is subject to regulatory approvals and other customary closing conditions.

“This acquisition reinforces The Hartford’s leadership in employee benefits and small business,” said The Hartford’s Chair and CEO Christopher Swift.

“Small and midsize employers represent a strategic growth opportunity for our Employee Benefits business, and this transaction strengthens our ability to meet the evolving needs of this important business segment.”

Commenting on the tech part of the acquisition, Mike Fish, head of Employee Benefits at The Hartford, said, “The modern, integrated technology makes it easier for our small and midsize business customers to access and manage their benefits.”

Equitable’s Employee Benefits business and The Hartford plan to work together to support their mutual customers. Roughly 300 employees who support the acquired business are expected to join The Hartford upon closing.

Rothschild & Co served as financial advisor to The Hartford, and Sidley Austin LLP served as The Hartford’s legal advisor.

J.P. Morgan served as financial advisor to Equitable, with Debevoise & Plimpton LLP serving as legal advisor to Equitable.

Source: The Hartford