WEX To Acquire benefitexpress For $275 Million

FinTech platform WEX has signed an agreement to acquire benefitexpress, a cloud-based benefits administrator, for $275 million, the FinTech announced today (April 14).

With benefitexpress, WEX will add a suite of benefits administration solutions for WEX Health clients. The health and employee benefits offerings include employee enrollment tools, Affordable Care Act compliance and dependent verification services.

“The acquisition of benefitexpress accelerates our strategic vision of offering a complete healthcare ecosystem with a highly complementary benefits administration platform at its core,” said Robert Deshaies, president of WEX’s Health division, in the press release.

Benefitexpress is a long-time partner of WEX Health, according to the press release. The acquisition is expected to be completed in the second quarter of 2021, pending regulatory approval.

“We are excited to welcome the benefitexpress team to the WEX family and look forward to delivering increased value to employers, consumers, and partners through a comprehensive and integrated suite of products, services and technologies,” added Deshaies.

Using the cloud, benefitexpress has created benefits administration technology that helps its clients provide engaging benefits programs for their employees, per its website. Digitization — across all industries — can significantly reduce error and inefficiencies. During the pandemic amid the prevalence of remote working opportunities, digitization is all the more important.

“The trend toward hybrid work ecosystems will increase rapidly, and by 2025 we predict a world characterized by a dispersed, digitally enabled, liquid workforce,” Marie Puybaraud, global head of corporate solutions research at commercial real estate firm JLL told the Davos Agenda, PYMNTS reported.

WEX serves businesses in over countries around the world. The company’s Health division serves 408,000 employers and 33.1 million consumers who manage healthcare expenses, according to the press release.