San Francisco-based Castlight Health has acquired Jiff, a digital health benefits platform, for about 27 million shares representing about 20% of the combined company.
The deal will expand Castlight's software platform services to include Jiff's smartphone app, which allows employees to connect to providers of health and wellness programs. Castlight provides a platform for employers to evaluate their benefits programs and for employees to compare insurance options.
The transaction is expected to be complete by the first half of 2017. The companies will serve a combined 240 customers.
John Doyle, Castlight president and chief operating officer, will assume the role of CEO. Derek Newell, current CEO of Jiff, will serve as president.
In addition, two members of the current Jiff board will be appointed to the Castlight board, and one Castlight board member will step down.
Castlight, which was founded in 2008, expects to report about $102 million in revenue for 2016. Jiff is expected to generate $7 million for 2016.
The combined company is expected to generate about $138 million to $142 million in revenue by the end of 2017.