WEX (NYSE: WEX), a leading financial technology service provider (the “Company”), today announced the signing of an agreement to acquire benefitexpress, a leading provider of highly configurable, cloud-based benefits administration technologies and services.
benefitexpress significantly expands WEX’s offerings in benefits administration by adding a complementary suite of solutions to WEX’s Health offerings, including employee enrollment and decision support tools for employees, benefits administration, and important value-added services, such as Affordable Care Act compliance, dependent verification services, and other benefit administration services.
benefitexpress has been a trusted partner of WEX’s Health division for several years. This acquisition will extend WEX’s health and employee benefits products and services across the full, end-to-end needs of employer clients. In addition to making WEX an even more innovative and comprehensive technology and services provider to employers, brokers, and partners, the combined offering will also accelerate opportunities for WEX within the public sector.
“The acquisition of benefitexpress accelerates our strategic vision of offering a complete healthcare ecosystem with a highly complementary benefits administration platform at its core,” said Robert Deshaies, President of WEX’s Health division. “We are excited to welcome the benefitexpress team to the WEX family and look forward to delivering increased value to employers, consumers, and partners through a comprehensive and integrated suite of products, services and technologies.”
Pursuant to the terms of the agreement, WEX will acquire benefitexpress for total consideration of approximately $275 million, subject to certain working capital and other adjustments. WEX expects the acquisition to be neutral to Adjusted Net Income for 2021.
The transaction is expected to be completed in the second quarter, subject to regulatory approvals and other customary closing conditions.
William Blair acted as financial advisor to benefitexpress, and Wilmer Cutler Pickering Hale and Dorr LLP provided legal counsel to WEX.