HealthEquity Closes Acquisition of BenefitWallet HSA Portfolio

HealthEquity (Nasdaq: HQY) has completed the acquisition of Conduent’s BenefitWallet HSA portfolio, bringing over 616,000 HSA members and approximately $2.7 billion in HSA assets, including 34% in HSA investments.

Rhea-AI Summary

HealthEquity (Nasdaq: HQY) has completed the acquisition of Conduent’s BenefitWallet HSA portfolio, bringing over 616,000 HSA members and approximately $2.7 billion in HSA assets, including 34% in HSA investments. The acquisition boosts HealthEquity's member base to over nine million HSA members and 16 million total accounts. The newly acquired members will benefit from advanced investment tools and renowned customer support. CFO James Lucania highlighted that the new members are generally higher savers, with over 85% of their HSA cash in Enhanced Rates, representing a significant opportunity to increase value and meet the company's goal of doubling non-GAAP net income per share by fiscal 2027.

Positive

• Acquisition adds over 616,000 HSA members to HealthEquity.
• Includes approximately $2.7 billion in HSA assets, with 34% as investments.
• Increases total HSA members to over nine million.
• Total accounts now exceed 16 million.
• Enhanced range of HSA solutions and services for new members.
• BenefitWallet members have high savings rates, with 85% of HSA cash in Enhanced Rates.
• Potential to significantly boost non-GAAP net income per share by fiscal 2027.

Negative

• High upfront costs associated with acquisition.
• Integration risks of onboarding 616,000 new members.

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DRAPER, Utah, May 14, 2024 (GLOBE NEWSWIRE) -- HealthEquity, Inc. (Nasdaq: HQY) ("HealthEquity"), the leader in Health Savings Account (HSA) and consumer-directed benefits administration, is pleased to announce the completed transfer of Conduent’s (Nasdaq: CNDT) BenefitWallet HSA portfolio.

HealthEquity Chief Executive Officer, Jon Kessler said, "We are thrilled to welcome BenefitWallet clients and members as partners on our mission to save and improve lives by empowering healthcare consumers. We are committed to leading the health savings space by delivering remarkable service, deepening partnerships, and driving outcomes that matter to them."

HealthEquity welcomed more than 616,000 HSA members with approximately $2.7 billion in HSA Assets, of which approximately 34% are HSA investments. The newly onboarded members now have a wider range of HSA solutions, services, and options, including advanced investment and management tools and renowned Purple member and client support.

“With the addition of the BenefitWallet members, we now serve more than nine million HSA members and more than 16 million total accounts. Our members benefit from the investments we’ve made in the cloud, data analytics, automation, and the connectivity we deliver to our clients and partners across the health benefits ecosystem,” said HealthEquity Executive Vice President and CFO, James Lucania. “Our new BenefitWallet members are healthy savers, carrying above market balances with more than 85% of their HSA cash in Enhanced Rates. Combined, this represents a meaningful opportunity to provide continued value to these members and deliver a downpayment on our goal to double fiscal 2024 non-GAAP net income per share by the end of fiscal 2027.”

About HealthEquity

HealthEquity and its subsidiaries administer HSAs and various other consumer-directed benefits for over 16 million accounts, working in close partnership with employers, benefits advisors, and health and retirement plan providers who share our unwavering commitment to our mission to save and improve lives by empowering healthcare consumers. Through cutting-edge solutions, innovation, and a relentless focus on improving health outcomes, we empower individuals to take control of their healthcare journey while ultimately enhancing their overall well-being. Learn more about our “Purple service” and approach at www.healthequity.com.

Investor Relations Contact:
Richard Putnam, HealthEquity, (801) 231-0697, rputnam@healthequity.com

Media Contact:
Amy Cerny, HealthEquity, 801-508-3237, acerny@healthequity.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the significance of HealthEquity's acquisition of BenefitWallet for HQY?

The acquisition added over 616,000 HSA members and approximately $2.7 billion in HSA assets to HealthEquity, significantly boosting its member base and total accounts.

How does the acquisition of BenefitWallet impact HealthEquity's HSA member count?

The acquisition increases HealthEquity's HSA members to over nine million.

What financial assets were added to HealthEquity through the acquisition of BenefitWallet?

The acquisition included approximately $2.7 billion in HSA assets, with 34% being HSA investments.

What are the enhanced services provided to the new BenefitWallet members by HealthEquity?

New BenefitWallet members have access to advanced investment and management tools, and renowned customer support within HealthEquity's platform.

How are the new BenefitWallet members characterized in terms of savings?

The new members are generally higher savers, with over 85% of their HSA cash in Enhanced Rates.

What is HealthEquity's financial goal following the acquisition of BenefitWallet?

HealthEquity aims to double its fiscal 2024 non-GAAP net income per share by the end of fiscal 2027.