Business
HealthEquity to Acquire Further
Adds private-label capabilities, significant health plan relationships and VEBA solutions DRAPER, Utah, April 08, 2021 (GLOBE NEWSWIRE) -- HealthEquity, Inc.
About this update from Healthequity, Inc.
[{"type":"text","content":"Adds private-label capabilities, significant health plan relationships and VEBA solutions\nDRAPER, Utah, April 08, 2021 (GLOBE NEWSWIRE) -- HealthEquity, Inc. (NASDAQ: HQY) (\"HealthEquity\"), the nation's largest independent health savings account (\"HSA\") custodian, today announced that it had entered into a definitive agreement to acquire Further, a leading provider of HSA and consumer directed benefit administration services, and the nation’s ninth largest HSA custodian overall. The acquisition of Further and its technology expands HealthEquity’s leadership in the growing HSA market, enhances its ability to drive growth with health plans and other go-to-market partners, and adds to its Total Solution offering of remarkable products backed by trademark Purple service, education and engagement to help working families connect health and wealth. Expanded HSA Leadership With Further’s approximately 550,000 HSA customers and $1.7 billion HSA assets under its custody, HealthEquity will grow to approximately 6.3 million HSA Members and more than $16 billion in HSA Assets, adding to its position as the leading health savings custodian nationwide. 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), including FSAs, HRAs and VEBAs. Technology-Driven Partner Growth Further’s private-label HSA and CDB solutions, deployed in the cloud, expand HealthEquity’s reach to a growing network of health plan, retirement plan, benefits administration, and other go-to-market partners. “By putting HealthEquity’s Total Solution inside of network partner applications and private-label brand environments, Further’s technology will align us more closely than ever before and enable new partnerships to introduce more consumers to HSAs,” said President and CEO Jon Kessler. New VEBA Administration Capability Further is also a technology leader in employer-funded Voluntary Employees' Beneficiary Association (VEBA) trust administration. VEBAs are triple-tax advantaged health accounts like HSAs, that cover medical costs while employed or post-retirement. VEBAs are not restricted to those in high-deductible health plans. “Adding VEBA capability to HealthEquity’...