HealthSmart Announces Agreement to Acquire Wells Fargo TPA; Terms Not Disclosed

HealthSmart Holdings Inc., announced today that it has entered into a definitive agreement to acquire Wells Fargo Third Party Administrators, Inc., the medical third-party administration (TPA) business of Wells Fargo Insurance Services USA, Inc. – part of Wells Fargo & Company

. Terms of the transaction, which is expected to be completed by the end of the year, were not disclosed. Wells Fargo TPA offers employee benefits and claims administration services for employers. HealthSmart will acquire all of the operating assets and related liabilities of the TPA. As part of the transaction, HealthSmart will assume the leases for office locations in Charleston, WV, Juneau, AK, Fayetteville, NC and Newnan, GA and nearly 600 Wells Fargo TPA employees will join HealthSmart. Neal Aton, president and CEO of Wells Fargo Insurance Services, said his organization will continue to distribute medical TPA products and services to its customers using HealthSmart's broad network and capabilities. “Wells Fargo Insurance Services is dedicated to providing the best possible service to our customers,” he said. “For more than 30-years, HealthSmart has been serving customers in the commercial and Medicare segments through its state-of-the-art claims system. By working with HealthSmart, we are able to offer our customers additional access to the medical TPA products and services they need.” Following the acquisition, HealthSmart will have annual revenues of more than $100 million, employ more than 1,000 workers, and manage more than $5 billion in claims.