Skip to main content

Market Overview

HealthEquity Scoops Up Further For $500M

Share:
HealthEquity Scoops Up Further For $500M
  • HealthEquity Inc (NASDAQ: HQYhas agreed to acquire Further, a health savings account provider (HSA) and consumer-directed benefit administration services for $500 million.
  • The acquisition of Further and its technology reinforces HealthEquity's position in the HSA market and other go-to-market partners.
  • With Further's approximately 550,000 HSA customers and $1.7 billion HSA assets under its custody, HealthEquity will grow to about 6.3 million HSA Members and more than $16 billion in HSA Assets.
  • The acquisition also immediately expands HealthEquity's health plan footprint, particularly its commitment to not-for-profit health plans. 
  • Further also brings approximately 28,000 employer clients and over 300,000 consumer-directed benefit accounts (CDBs).
  • At closing, management expects the transaction to add approximately $60 million in revenue on an annualized run-rate basis, with a 20% contribution to the adjusted EBITDA margin.
  • Management expects to achieve an additional $15 million in efficiencies on an annualized basis within three years, with $55 million of one-time costs incurred over that period.
  • The transaction is expected to close by September.
  • Price Action: HQY shares closed 1.9% higher at $67.55 on Thursday.
 

Related Articles (HQY)

View Comments and Join the Discussion!

Posted-In: BriefsBiotech M&A News Health Care General

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com