Voya Financial to acquire Benefit Strategies, LLC

Rhea-AI Summary

Voya Financial (NYSE: VOYA) has entered into an agreement to acquire Benefit Strategies, LLC, a third-party administrator specializing in health savings and spending accounts. Benefit Strategies serves over 3,400 employers and nearly 370,000 participants. The acquisition aligns with Voya's workplace growth strategy and will enhance its service capabilities in health savings and spending accounts. The deal is expected to close in Q3 2021, adding around 150 employees to Voya.

Positive

• Strategic acquisition of Benefit Strategies supports Voya's expansion in health savings and spending accounts.
• Enhances Voya's service capabilities with improved call center support and management.
• Significant growth potential in the health savings and spending accounts sector, with a reported 25% increase in HSA assets since 2019.

Negative

• None.

Voya Financial, Inc. (NYSE: VOYA), announced today that it has entered into an agreement to purchase Benefit Strategies, LLC, a leading third-party administrator of health savings and spending accounts.

Benefit Strategies provides administrative services for COBRA, direct billing, flexible spending accounts (FSAs), health savings accounts (HSAs), health reimbursement arrangements (HRAs) and other services to more than 3,400 employers and nearly 370,000 participant accounts throughout the U.S. Terms of the transaction were not disclosed.

“We are very excited about this transaction as it supports Voya’s workplace growth strategy and will accelerate our expansion in the health savings and spending accounts market,” said Rob Grubka, CEO of Health Solutions for Voya Financial. “In addition to complementing Voya’s current health and wealth solutions, Benefit Strategies will deepen our capabilities to serve new and existing health savings and spending account clients through its enhanced call center support, implementation management and ongoing client services. Equally important, we see a great cultural fit between the Benefit Strategies team and Voya as both of our organizations are specifically focused on helping individuals take advantage of the many benefits of workplace-based savings accounts.”

“For more than 30 years, Benefit Strategies has been focused on helping our clients understand and achieve great value from the savings opportunities that FSAs, HSAs, and similar accounts can provide,” said Paul Smith, CEO and founder, Benefit Strategies. “It is clear that Voya shares this same focus, and we see great opportunities for our current clients as a result of Benefit Strategies becoming part of the Voya family. I admire and appreciate the customer-centric focus that Voya is taking to help its clients address the many financial and health challenges that they are facing. This customer-centric approach has been tremendously valuable in helping Benefit Strategies stand apart, and we are looking forward to continuing to partner with brokers and our clients.”

“We continue to see strong growth potential for Voya in the health savings and spending accounts business. With employees increasingly turning to the workplace for help to advance the financial well-being of their household, the health savings and spending accounts market is growing rapidly. Compared with 2019, assets in health savings accounts increased 25% and the number of new HSAs increased 6% in 2020, bringing the total number of HSAs to approximately 30 million in the U.S.¹,” added Grubka.

In addition to significantly adding to Voya’s existing health savings and spending accounts business, the transaction will further enable Voya to leverage its expertise and capabilities in its Investment Management business, which currently manages invested assets in Voya’s health savings accounts.

The transaction is expected to close in the third quarter of 2021 and is subject to customary closing conditions. Approximately 150 Benefit Strategies employees, including Smith, will join Voya after the transaction closes.

In January 2019, Voya launched its portfolio of health savings and spending account solutions, including HSAs, FSAs and a commuter benefit account. In early 2021, Voya expanded its offerings to include health reimbursement arrangements (HRAs) and COBRA administration.

As an industry leader focused on the delivery of health, wealth and investment solutions to and through the workplace, Voya Financial is committed to delivering on its mission to make a secure financial future possible for all Americans — one person, one family, one institution at a time.

1) 2020 Year-End Devenir HSA Market Survey

About Voya Financial^®
Voya Financial, Inc. (NYSE: VOYA), helps Americans plan, invest and protect their savings — to get ready to retire better. Serving the financial needs of approximately 14.8 million individual and institutional customers in the United States, Voya is a Fortune 500 company that had $7.6 billion in revenue in 2020. The company had $700 billion in total assets under management and administration as of Dec. 31, 2020. With a clear mission to make a secure financial future possible — one person, one family, one institution at a time — Voya’s vision is to be America’s Retirement Company^®. Certified as a “Great Place to Work” by the Great Place to Work^® Institute, Voya is equally committed to conducting business in a way that is socially, environmentally, economically and ethically responsible. Voya has earned recognition as one of the World’s Most Ethical Companies^® by the Ethisphere Institute; as the No. 1-ranked financial services firm among Barron’s 100 Most Sustainable Companies for three consecutive years; as a member of the Bloomberg Gender Equality Index; and as a “Best Place to Work for Disability Inclusion” on the Disability Equality Index. For more information, visit voya.com. Follow Voya Financial on Facebook, LinkedIn and Twitter @Voya.

VOYA-EB VOYA-IR VOYA-CF

View source version on businesswire.com: https://www.businesswire.com/news/home/20210510005454/en/

FAQ

What is Voya Financial's recent acquisition?

Voya Financial has agreed to acquire Benefit Strategies, LLC, a company that provides administrative services for health savings and spending accounts.

When is Voya's acquisition of Benefit Strategies expected to close?

The acquisition is anticipated to close in the third quarter of 2021, pending customary closing conditions.

What services does Benefit Strategies offer?

Benefit Strategies provides services for COBRA, flexible spending accounts (FSAs), health savings accounts (HSAs), and health reimbursement arrangements (HRAs).

How will Voya benefit from acquiring Benefit Strategies?

The acquisition will enhance Voya's capabilities in health savings and spending accounts, support workplace growth strategy, and allow for better client service.

What market trends support Voya's acquisition of Benefit Strategies?

The health savings and spending accounts market is growing rapidly, with HSA assets increasing by 25% since 2019.