HealthEquity announced it will acquire Further, a health savings account business run by Blue Cross and Blue Shield of Minnesota parent Stella Health, for $500 million.
According to an April 8 statement, the deal will increase HealthEquity's health savings account membership by 550,000, which will bring the company's membership total to 6.3 million.
Utah-based HealthEquity expects the acquisition to generate $60 million in revenue on an annual run-rate basis as well as an additional $15 million in efficiencies on an annualized basis within three years, according to the statement.
The deal is expected to close by September, pending regulatory approvals.
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