WEX Agrees to Acquire Bell Bank’s HSA Deposits

FARGO, N.D. • Bell Bank and WEX Inc., a leading financial technology service provider, announced the signing of an agreement for WEX to acquire certain health savings account (HSA) assets of HealthcareBank, the custodian bank for customers of WEX’s Health division. HealthcareBank is a division of Fargo-based Bell Bank and has served as the custodian of HSA assets through partnerships with other banks and third-party HSA providers. This acquisition will allow WEX to better capture the economics of these HSA assets, while HealthcareBank will continue to provide servicing and operational support.

Under the agreement, WEX will pay cash consideration of about $250 million to Bell Bank. The transaction agreement also includes potential additional consideration based on any future increases in the Federal Funds rate.

The transaction is expected to close in the second quarter of 2021, subject to regulatory approvals and other customary closing conditions.

Headquartered in Fargo, N.D., Bell Bank has invested in consumer-driven health care over the past 15 years, including forming HealthcareBank in 2005 to act as custodian for HSA deposits. In 2019, Bell announced the sale of Discovery Benefits, an HSA provider then owned by Bell, to WEX.

Michael Solberg, Bell Bank’s president and CEO, emphasized that the agreement with WEX does not impact other deposits or assets of Bell, a family-owned company that continues to grow and expand its banking footprint in several regions of the country. “This agreement will provide us even greater liquidity, which gives us flexibility as we continue to consider strategies for growth,” Solberg said.

Acquire HSA Deposits

Congratulations, Andrea!

“Most importantly, our HealthcareBank division will continue to provide service for HSA accounts and operational support for managing those deposits and investments.

“We are thankful for our continued partnership through our previous capital investment in WEX Health, and we know this transaction will benefit both WEX and our company moving forward.”

Yourdedication to your coworkersandmembersis unmatchedand we’reproud to have youonour team! Congratulationsonbeing namedoneofthe region’s Top25WomeninBusiness. Gr owWi

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