HealthEquity (HQY) Closes Conduent's BenefitWallet Acquisition

Core Viewpoint - HealthEquity has completed the acquisition of Conduent's BenefitWallet Health Savings Account (HSA) portfolio for approximately $425 million, which includes around 665,000 customer accounts and $2.7 billion in HSA assets [1][2]. Acquisition Details - The acquisition price for the BenefitWallet HSA portfolio is approximately $425 million [2]. - The transaction includes about 665,000 customer accounts and approximately $2.7 billion of HSA assets [2]. Benefits of Acquisition - HealthEquity is the largest HSA administrator in the U.S., with over 8.7 million HSA accounts and total assets worth approximately $25.2 billion as of January 31, 2024 [3]. - The acquisition is expected to significantly boost HealthEquity's service revenues and increase the number of customer accounts, enhancing its focus on the HSA business [5]. - HealthEquity's market share in the HSA category has increased from 4% to 20% over the past 12 years, and this acquisition is anticipated to further enhance its market position [5]. Financial Performance - HealthEquity reported better-than-expected fourth-quarter fiscal 2024 results, with solid growth in HSAs contributing to the top line [7]. - For fiscal 2025, revenues are projected to be between $1.14 billion and $1.16 billion, with adjusted EPS expected in the range of $2.79 to $2.96 [8].