Portland-based financial technology services provider WEX Inc. (NYSE: WEX) on Thursday said it will acquire health savings account assets of HealthCare Bank, for around $250 million.
The Fargo, N.D.-based institution is the custodian bank for customers of WEX s Health division. The agreement includes potential additional consideration based on any future increases in the federal funds rate.
Separately, WEX said was redeeming $400 million in debt.
Under the terms of the acquisition agreement, WEX will pay approximately $200 million in cash, with two additional deferred payments of $25 million in July 2023 and January 2024.
WEX said it believes the acquisition will allow it to better capture the economics from the assets.