Employer.com offers $30 million to acquire troubled benefits startup Level just 5 days after abrupt shutdown

Employer.com, a San Francisco-based company focused on acquiring human resources businesses, has made a $30 million cash-and-stock offer to buy Level, a benefits startup that recently announced its closure. The Information broke the news, citing a source with direct knowledge of the ongoing discussions.

The talks come just days after Level abruptly shut down due to a failed acquisition deal. Employer.com’s proposal reportedly values the New York-based startup at a modest multiple of its annual revenue. However, the exact revenue figures remain undisclosed, and it’s unclear whether other bidders are in the mix.

“Employer.com has proposed paying roughly $30 million in cash and stock for Level, a low multiple to New York–based Level’s annual revenue, according to the person with direct knowledge. Level’s revenue couldn’t be learned. It’s unclear if there are other bidders for the business,” The Information reported.

Level, founded in 2018 by Paul Aaron, aimed to disrupt traditional insurance by offering flexible networks and real-time claims processing. The company promised to help employers and employees optimize benefit spending, positioning itself as a forward-thinking player in the benefits industry.

The startup gained significant attention in 2021 when it secured $27 million in Series A funding from Khosla Ventures and Lightspeed Venture Partners, according to Crunchbase. This investment enabled Level to roll out customizable plans, including full coverage for specific treatments and claims processing within just four hours.

Last Thursday, the company notified clients of its abrupt shutdown, leaving customers scrambling for alternatives. With Employer.com stepping in, the deal, if finalized, could provide a lifeline for the struggling startup. For now, all eyes are on whether the acquisition will move forward and what it could mean for Level’s existing customers.

Late last year, Employer.com acquired Vancouver-based accounting platform startup Bench only three days after its abrupt closure. If the deal goes through, Level will mark Employer.com’s second acquisition within a week.