HealthEquity, Inc. (HQY) (“HealthEquity” or the “Company”) today completed its acquisition of WageWorks, Inc., (WAGE) (“WageWorks”), to become a leading administrator of health savings accounts (“HSAs”) and complementary consumer-directed benefits (“CDBs”), including flexible spending and health reimbursement arrangements (“FSAs” and “HRAs”), COBRA and commuter benefits. The acquisition establishes HealthEquity as the complete partner for employers, benefits consultants, health and retirement plan providers seeking to help working families connect health and wealth.
HealthEquity also announced details of a $80-100 million investment in service. HealthEquity expects to bring all WageWorks customer care back to the United States, expand its digital and live member engagement capabilities, including benefits experts available every hour of every day, simplify administration for employers through a unified platform, and strengthen data security and privacy protections across all of its new CDB offerings. The Company expects to complete its investment program within 24 to 36 months.
“Delivering remarkable service, above and beyond what others expect, is the foundation of Purple,” said President and CEO Jon Kessler, referring to the shorthand used by HealthEquity to describe its culture and values. “These investments will extend Purple to everything we now offer.”
“We believe a complete solution highly focused on service and engagement can accelerate the market-wide movement to HSAs and catalyze consumer understanding of how best to use them,” said Dr. Stephen Neeleman, HealthEquity’s Founder and Vice Chairman and author of the Complete HSA Guidebook. “Together, with our talented new teammates, we believe we are now better positioned to realize HealthEquity’s vision of every American family using an HSA to reduce the lifetime cost of healthcare.”
A webcast of an investor conference call to discuss the close of the acquisition will be held on Tuesday, September 3, 2019 at 5 p.m. ET in connection with a discussion of HealthEquity’s second quarter earnings results, which will be announced after the market closes on that day. Details about the investor webcast are available at ir.healthequity.com.
About HealthEquity
HealthEquity administers health savings accounts (HSAs) and other consumer directed benefits for nearly 12 million members in partnership with employers, benefits advisors and health and retirement plan providers who share our mission to connect health and wealth and value our culture of remarkable “purple” service. For more information, visit www.healthequity.com.