Expands HSA Market Share, Health Plan Relationships, and Adds Private Label Solutions – Form 8-K


Expands HSA market share and relationships with health plans

and add private label solutions

DRAPER, Utah, (GLOBE NEWSLETTER) – November 1, 2021 – HealthEquity, Inc. (NASDAQ: HQY) (“HealthEquity”), the country’s largest non-bank health savings account (“HSA”) custodian, today completed the acquisition of Further, one of the leading providers of HSAs and consumer-focused benefits (“CDB”) and the ninth largest HSA custodian in the country.

The acquisition of Further and its technology extends HealthEquity’s leadership in the growing HSA market and enhances its ability to drive growth with Health Plans and other go-to-market partners. The agreement also adds to HealthEquity’s total solution, offering outstanding products backed by service, training and employee engagement support that go above and beyond customer expectations.

“We are delighted to join forces with the Further team, who share our focus on intuitive technology and outstanding service to bridge health and wealth,” said Jon Kessler, President and CEO of HealthEquity.

Broad HSA leadership

HealthEquity now has approximately 6.7 million HSAs and approximately $ 18 billion in HSA assets, including approximately 580,000 HSAs and $ 1.9 billion in HSA assets from Further and the recently completed acquisition of the HSA portfolio of Fifth Third Bank, which added 157,000 HSAs and $ 490 million in HSA assets. In addition, also brings in approximately 28,000 employer clients and approximately 270,000 CDBs, not including approximately 50,000 VEBA accounts which may be acquired at a later date, to extend HealthEquity’s leadership in the market.

Technology-driven partner growth

The additional acquisition expands HealthEquity’s commitment to independent Blue Cross Blue Shield licensees, now serving the vast majority of Blue’s network of 35 independent companies. HealthEquity also serves a growing network of health plans, pension plans, benefits administration and other marketing partners.

“For nearly 20 years, HealthEquity has linked health and wealth through education and the deployment of great, easy-to-use technology in concert with our partners. growing network of marketing partners, ”said Kessler.

Financial details

HealthEquity bought Further for $ 455 million, with an additional purchase price of up to $ 45 million that may be payable depending on the closing and migration of VEBA’s assets early next year. We expect Next to add more than $ 12 million in revenue in our 2022 fiscal year ending January 31, 2022, and less than $ 1 million in adjusted EBITDA based on the ramp-up of member services. in the fourth quarter and costs associated with implementing the federal vaccine mandate.

About HealthEquity

HealthEquity and its subsidiaries administer Health Savings Accounts (HSAs) and other consumer benefits for our more than 13 million accounts in partnership with employers, benefit advisors and health plan providers and who share our mission to connect health and wealth and enhance our culture of outstanding “Purple” service. For more information visit www.healthequity.com.

Forward-looking statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our industry, our business strategy, our plans, goals and expectations regarding our markets and market position, product expansion, future operations, expenses and other operating results, revenues, margins, profitability, future efficiencies, our tax rates, capital expenditures, liquidity and capital resources and other financial and operational information. When used in this discussion, the words “may”, “believe”, “intend”, “seek”, “anticipate”, “plan”, “estimate”, “expect”, “should” “,”,,, “” Could “,” will “,” future “and the negative of such terms or similar expressions are intended to identify forward-looking statements in this press release.

Forward-looking statements reflect our current expectations regarding future events, results or results. These expectations may or may not be fulfilled. Although we believe that the expectations reflected in forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. Some of these expectations may be based on assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. While it is not possible to identify all of these risks and factors, they include, among others, risks related to the following:


the impact of the COVID-19 pandemic on the Company, its operations and its financial results;


our ability to realize the financial and other benefits expected by combining Further’s operations with our businesses in an efficient and effective manner;


our ability to compete effectively in a rapidly changing health care and benefits administration industry;


our reliance on the continued availability and benefits of tax-efficient health savings accounts and other consumer benefits;


our ability to realize the financial and other benefits expected to the Company from the acquisition of Further;


our ability to identify, acquire and successfully integrate additional portfolio purchases or acquisition targets;


the significant competition we face and may face in the future, including from those with more resources than us;


our dependence on the availability and performance of our technology and communications systems;


recent and potential future breaches of the cybersecurity of our technology and communications systems and other data disruptions, including the resulting costs and liabilities, damage to reputation and loss of business;


the current uncertain health care environment, including changes in health care programs and spending and related regulations;


our ability to comply with current and future privacy, health care, tax, investment advisor and other laws applicable to our business;


our dependence on partners and third party suppliers for distribution and important services;


our ability to develop and implement updated functionality for our technology and communications systems and to successfully manage our growth;


our ability to protect our brand and other intellectual property rights; and


our dependence on our management team and key team members.

For a detailed discussion of these and other risk factors, please see the risks detailed in our filings with the Securities and Exchange Commission, including, without limitation, our most recent annual report on the Form 10-K and subsequent periodic and current reports. A previous performance is not necessarily indicative of future results. We assume no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements should not be taken as representing our views as of any date subsequent to the date of this press release.

Investor Relations Contact: Media relations

Richard putnam

Amy Cerny



[email protected] [email protected]


Health Equity Inc. published this content on November 01, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 01 November 2021 12:26:15 UTC.


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