Transaction would create the premier provider of HSAs and additional consumer-directed benefits
HealthEquity, Inc., the nation’s largest independent health savings account custodian, today confirmed that it has made a proposal to acquire all of the outstanding shares of WageWorks, Inc. for $50.50 per share in cash. The proposal was submitted to WageWorks on April 11, 2019.
The proposed acquisition would accelerate HealthEquity’s growth by creating the premier provider of both HSAs and additional consumer-directed benefits, including flexible spending and health reimbursement arrangements, COBRA and commuter accounts. The company would have a wide distribution footprint, significant customer base, and proprietary technology driving member engagement, smart spending and health saving for life.
HealthEquity has carefully considered the strategic and financial benefits of this acquisition, leveraging publicly available information, proprietary research, its own industry knowledge and the expertise of external advisors. It has provided a definitive debt financing commitment letter to WageWorks, and has also indicated a willingness to include HealthEquity stock as a component of transaction consideration.
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While HealthEquity stands ready to engage with WageWorks to negotiate a transaction, there can be no assurance such negotiations will be undertaken or that an agreement will be reached.
HealthEquity’s President and CEO, Jon Kessler, commented on the proposal to WageWorks, “Together, we believe we can create exceptional value helping American families connect health and wealth. We look forward to engaging with WageWorks management and board as quickly as possible.”
Date: May 06, 2019
Source: MarketWatch