HealthEquity Inc on Tuesday confirmed its offer to acquire WageWorks Inc in a deal valuing the administrator of employee benefits at about $2.01 billion.
The offer of $50.50 per share represents a 17.3 percent premium to WageWorks’ Monday close.
The acquisition would create a larger provider of health savings accounts and additional consumer-directed benefits including flexible spending, health reimbursement plans and commuter accounts, HealthEquity said.
It is currently responsible for about 4 million health savings accounts and connects health, retirement and other benefit plan providers with employees at more than 45,000 companies.
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Last year, WageWorks had announced financial restatements and several changes to its top executive line-up after probe into weakness in internal controls.
Shares of WageWorks were up 13.9 percent to $49.01, while HealthEquity was down 6.5 percent to $68.2.
HealthEquity said the proposal was submitted to WageWorks on April 11, 2019.
Reuters on Monday reported that HealthEquity had approached WageWorks, which has a market value of about $1.72 billion, with the offer.
Date: May 06, 2019
Source: Reuters
