BCBS of Minnesota parent to sell health savings account unit for $500M

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.

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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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