HealthEquity buys Minnesota HSA company

HealthEquity Inc., a Draper-based independent health savings account (HSA) custodian, has entered into a definitive agreement to acquire Further, a provider of HSA and consumer directed benefit administration services based in Eagan, Minnesota.

“The acquisition of Further and its technology expands HealthEquity’s leadership in the growing HSA market, enhances its ability to drive growth with health plans and other go-to-market partners and adds to its Total Solution offering of remarkable products backed by trademark "Purple" service, education and engagement to help working families connect health and wealth,” HealthEquity said in its announcement of the transaction.

With Further’s approximately 550,000 HSA customers and $1.7 billion HSA assets under its custody, HealthEquity will grow to approximately 6.3 million HSA members and more than $16 billion in HSA assets. The acquisition also immediately expands HealthEquity’s health plan footprint, particularly in its not-for-profit health plans services. Further also brings approximately 28,000 employer clients and over 300,000 consumer-directed benefit accounts (CDBs).

“By putting HealthEquity’s Total Solution inside of network partner applications and private-label brand environments, Further’s technology will align us more closely than ever before and enable new partnerships to introduce more consumers to HSAs,” said Jon Kessler, president and CEO of HealthEquity.

HealthEquity is purchasing Further for $500 million, the company said.