PORTLAND: WEX Inc., a financial technology service provider, announced the signing of an agreement to acquire certain health savings account (HSA) assets of HealthcareBank, the custodian bank for customers of WEX’s Health division.
Pursuant to the terms of the agreement, WEX will pay an initial cash consideration of approximately $200 million, with two additional deferred cash payments of $25 million in July 2023 and January 2024.
The transaction agreement also includes potential additional consideration based on any future increases in the Federal Funds rate.
“We believe this acquisition will allow the Company to better capture the economics from these HSA assets,” a news release said.
“This asset purchase expands WEX’s role in the attractive consumer-directed healthcare ecosystem and aligns with our growth strategy,” said Robert Deshaies, President of WEX’s Health division.
“We are excited to provide a more streamlined relationship experience, one that positions us to better leverage our investments to provide market-leading HSA solutions.”
WEX expects the acquisition to be accretive to adjusted net income in fiscal year 2021. The transaction is expected to close in the second quarter of 2021, subject to regulatory approvals and other customary closing conditions.
Powered by the belief that complex payment systems can be made simple, WEX (NYSE: WEX) is a leading financial technology service provider across a wide spectrum of sectors, including fleet, travel and healthcare.
WEX operates in more than 10 countries and in 20 currencies through approximately 5,000 associates around the world. WEX fleet cards offer 15 million vehicles exceptional payment security and control; purchase volume in its travel and corporate solutions grew to approximately $40 billion in 2019; and the WEX Health financial technology platform helps 390,000 employers and more than 32 million consumers better manage healthcare expenses. www.wexinc.com