Conduent’s BenefitWallet HSA Portfolio Moving to HealthEquity

FLORHAM PARK, N.J. and DRAPER, Utah, Sept. 19, 2023 (GLOBE NEWSWIRE) -- Conduent Incorporated (Nasdaq: CNDT), a global technology-led business solutions and services company, and HealthEquity, Inc. (Nasdaq: HQY), the nation’s largest health savings account (HSA) administrator, today announced that they have entered into a definitive agreement to transfer BenefitWallet’s Health Savings Account (HSA) portfolio to HealthEquity.

The agreement contemplates a purchase price of approximately $425 million for the transition of all BenefitWallet HSA accounts, including approximately 665,000 customer accounts and their approximately $2.7 billion of HSA assets to HealthEquity.

"This transaction demonstrates progress on the portfolio rationalization plan outlined earlier this year,” said Cliff Skelton, President and Chief Executive Officer, Conduent. “Clients and customers will continue to benefit from the strong and long-standing relationship between Conduent and HealthEquity. HealthEquity will provide best-in-class HSA solutions, while Conduent will continue to provide a variety of other market-leading solutions, including benefit administration services.”

"We are eager to welcome BenefitWallet HSA members, their employers, and partners to HealthEquity with remarkable Purple service from HSA experts and the industry’s leading platform for empowering healthcare consumers," said HealthEquity's CEO, Jon Kessler.

HealthEquity serves as the custodian of more than 8.2 million HSAs with assets totaling $23.2 billion. In addition to 24-hour member services support, the company provides personalized service, intuitive technology, and convenient education tools for employers and members to manage their accounts.

The transfer of the BenefitWallet HSA assets to HealthEquity is expected to close in multiple tranches during the first half of 2024 and is subject to regulatory approval and the satisfaction of certain other customary closing conditions. With respect to use of proceeds, Conduent intends to continue with a balanced approach to capital allocation including maintaining modest levels of net leverage.

J.P. Morgan Securities LLC is serving as financial advisor, and Willkie Farr & Gallagher LLP is serving as legal counsel to HealthEquity. Holland & Knight LLP is serving as legal counsel to Conduent for the transaction.

About HealthEquity
HealthEquity and its subsidiaries administer HSAs and other consumer-directed benefits for 15 million accounts in partnership with employers, benefits advisors, and health and retirement plan providers who share our mission to save and improve lives by empowering healthcare consumers and value our culture of remarkable “Purple” service. For more information, visit www.healthequity.com.