FARGO, N.D.--(BUSINESS WIRE)--Evolution1® – a leader in cloud-based technology and payment solutions in the healthcare industry – announced today that it has entered into a definitive agreement with WEX Inc. (NYSE: WEX), a leading provider of corporate payment solutions, for WEX to acquire Evolution1 for $532.5 million in cash. The transaction will enhance WEX’s position in the attractive healthcare vertical and will serve as the cornerstone of WEX’s Healthcare solutions offering.
Evolution1 and its network of partner organizations serve 90,000 employers and more than 10 million consumers across the country. The company employs approximately 300 people and will retain its offices in Fargo, North Dakota; Hartford, Connecticut; Minneapolis, Minnesota; and St. Louis, Missouri.
WEX is a multi-channel provider of corporate payment solutions, offering exceptional payment security and control across a wide spectrum of business sectors. Headquartered in South Portland, Maine, WEX has an additional 10 offices in the U.S. and abroad. The company employs 1,400 associates.
Evolution1 will remain committed to its partners, including third-party administrators, health plans, financial institutions and payroll providers, to capitalize on the market opportunity and significant investment into innovative healthcare technology solutions. The combination of Evolution1 and WEX leverages the high growth and strong financial performance of both companies to deliver on the mission of simplifying the business of healthcare. Evolution1 will be led by Jeff Young, current chairman and CEO of the company.
“We are excited to be joining the WEX team, as both companies are a great fit both culturally and operationally. With a shared ability to simplify an incredibly complex payment space and Evolution1’s market-leading products, the combination will enable WEX to service multiple aspects of the healthcare payment system, as more spend is shifting toward consumer controlled,” said Young.
Evolution1 is among the industry’s fastest growing organizations and has been recognized repeatedly on Inc. 500|5000 and Deloitte Technology’s Fast 500 lists for the last several years. In 2013 alone, the number of consumers on the Evolution1 platform grew to 10 million consumers, the company facilitated billions of dollars in transactions, the adoption of 1Mobile by Evolution1® grew more than 100 percent, the company’s solution powered more than 20 exchanges, and growth by partners far surpassed the industry average. Evolution1’s portfolio of products, solutions, and services are expected to remain unchanged as a result of the acquisition.
“As a leading provider of cloud-based technology and payment solutions, Evolution1 will significantly advance WEX’s position in the complex, high-growth healthcare sector and serve as the cornerstone of our healthcare solutions offering. Evolution1’s powerful, all-in-one multi-tenant technology platform supports a full range of healthcare account types and has established a strong partner loyalty for its services offering, which is a key shared attribute of our two companies,” said Melissa Smith, WEX’s president and chief executive officer.
Transaction Details
WEX Inc. and Evolution1 have entered into a definitive agreement through which WEX will acquire Evolution1 for $532.5 million. The transaction, which has been unanimously approved by the boards of directors of both companies, is subject to regulatory approvals and other customary closing conditions and is expected to close in the third quarter of this year.
About Evolution1
At Evolution1®, we simplify the business of healthcare. We do that through innovative healthcare software and payment solutions that administer and manage consumer directed accounts. But we don’t do it alone. Our network of partner organizations enables us to deliver our industry-leading solution to 90,000 employers and more than 10,000,000 consumers across the country. Together we take the complexity out of defined contribution, HSAs, HRAs, FSAs, VEBAs, PRAs, wellness plans and transit plans. Created with users in mind, our solutions provide a single end-to-end intuitive user experience that reduces costs, saves time and ultimately simplifies the business of healthcare. Learn more at www.evolution1.com.
About WEX Inc.
WEX Inc. (NYSE: WEX) is a leading provider of corporate payment solutions. From its roots in fleet card payments beginning in 1983, WEX has expanded the scope of its business into a multi-channel provider of corporate payment solutions representing more than 7.8 million cardholders and offering exceptional payment security and control across a wide spectrum of business sectors. The Company’s operations include WEX Bank, Fleet One, Pacific Pride, rapid! PayCard, WEX Australia, WEX New Zealand and WEX Europe, as well as a majority equity position in UNIK S.A., Brazil. WEX and its subsidiaries employ more than 1,400 associates. For more information about WEX, please visit www.wexinc.com.
