WageWorks to Be Acquired by HealthEquity for Approximately $2 Billion
On June 27, 2019, HealthEquity, the nation’s largest independent health savings account (HSA) non-bank custodian, and WageWorks, a leader in administering HSAs and complementary consumer-directed benefits (CDBs), announced that they have entered into a definitive agreement under which HealthEquity will acquire all of the issued and outstanding shares of common stock of WageWorks for $51.35 per share in cash, representing a total enterprise value of approximately $2 billion. The transaction has been approved by the boards of directors of both HealthEquity and WageWorks and is subject to WageWorks' stockholder approval, regulatory approvals, and other customary closing conditions, but is not subject to the availability of financing. It is expected to close before year-end. Wilson Sonsini Goodrich & Rosati is representing WageWorks in the transaction.
The acquisition is expected to give HealthEquity access to more of the fast-growing HSA market by expanding its direct distribution to employers and benefits advisors as a single source, premier provider of HSAs and complementary CDBs, including flexible spending accounts, health reimbursement arrangements, COBRA administration, and commuter accounts. Its focus on member engagement and remarkable service enables HealthEquity to more fully meet the needs of employers, partners, and a broader range of consumers along the continuum of health savings.
The WSGR team representing WageWorks in the transaction includes:
Employee Benefits & Compensation:
Myra Sutanto Shen
For more information, please see the news release concerning the transaction.