Aetna announced Wednesday it will acquire PayFlex Holdings for roughly $202 million, as the health insurer looks to expand its existing consumer fund services business.
PayFlex, one of the largest independent account-based health plan administrators, has approximately one million accounts and 3,300 direct employer customers. Aetna says it expects to combine PayFlex and its CFS business into a single unit with two million accounts.
It says the transaction, expected to close in the second half of 2011, will be neutral to its financial results in 2011 and 2012.
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"This acquisition fits well with Aetna's core business, which has a strong focus on consumer-directed product offerings," says Mark Bertolini, chairman, CEO and president. "With an increased focus on consumerism, the acquisition of PayFlex will extend Aetna's ability to provide members with flexible, customized, easy-to-use tools and solutions to better manage their health care expenses."
PayFlex provides proprietary web-based benefit administration services and solutions for plan sponsors who offer consumer-based products such as health savings accounts, health reimbursement accounts and flexible spending accounts, and also provides COBRA direct-billing services. The Omaha, Neb.-based company has 423 employees that will remain with the company.
The combination of the businesses will allow PayFlex to continue to sell its products on a standalone basis as well as on an integrated basis with Aetna products, Aetna reps say. Importantly, the combined business will be able to offer "a comprehensive solution on a single platform."
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