WageWorks Acquires Benefit Concepts to Further Its Leadership Position in Consumer-Directed Benefits
SAN MATEO, Calif.--(BUSINESS WIRE)-- WageWorks, Inc. (NYS: WAGE) , a leading provider of Consumer-Directed Benefits (CDBs), such as pre-tax accounts for health, commuter and other employee benefits, today announced that it has acquired Benefit Concepts, Inc., a leading provider of outsourced benefit solutions, based in East Providence, RI. This transaction further strengthens WageWorks' position in the Consumer-Directed Benefits market.
Benefit Concepts serves the needs of hundreds of mid-sized and large employers by providing their employees and families with a range of Consumer-Directed Benefits, including health care, such as Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs), COBRA benefits continuation, and active benefits enrollment, designed to make access to healthcare easier and more affordable.
"We are very pleased to welcome Benefit Concepts to the WageWorks family," said Joe Jackson, CEO, WageWorks. "The quality of their customer and broker relationships, their talented management team, and the expertise they have in COBRA administration and active benefits enrollment make them a natural fit for WageWorks as we continue to expand our comprehensive suite of Consumer-Directed Benefits."
''At Benefit Concepts, our mission has been to simplify benefit administration and make it as efficient and as effective as possible. Being part of WageWorks offers us access to the extensive expertise, technology, and service resources of a leading national administrator that will make our offerings even stronger," said Jay Hoder, Chairman, Benefit Concepts.
Benefit Concepts will continue to service its customers out of its Rhode Island offices, supported by additional capabilities, products and technologies provided by WageWorks. The company will now operate as "Benefit Concepts, Inc., a division of WageWorks, Inc.".
WageWorks will host a conference call today, January 7, 2013, at 5:00 p.m. ET to further discuss the acquisition of Benefit Concepts and the expected financial impact.
The live webcast of the conference call can be accessed under "Investor Relations" section of the Company's website at www.wageworks.com. Those wishing to participate in the live call should dial 866-271-5140 (toll-free) or 617-213-8893, and enter pass code 90572912. Following the call, an archived webcast will be available in the "Investor Relations" section of the Company's website at www.wageworks.com. A replay will be available at 888-286-8010 (toll-free) or 617-801-6888 using the pass code 52228494.
Statements in the press release and certain matters to be discussed on the conference call regarding WageWorks' acquisition of Benefit Concepts, Inc., which are not historical facts, are "forward- looking statements" within the meaning the Private Securities Litigation Reform Act of 1995. These forward looking statements may be identified by terms such as believe, expect, may, will, provide, could and should and the negative of these terms or other similar expressions. These statements, including statements relating to continuing to provide value to their and our employer clients through consumer-directed benefits solutions, the expected benefits of this acquisition and the potential impact on our future operating results are based on current expectations and assumptions that are subject to risks and uncertainties. Our actual results could differ materially from those we anticipate as a result of various factors, including the continued availability of tax-advantaged consumer-directed benefits to employers and employees, our ability to successfully integrate this acquisition, our ability to acquire and retain new employer clients and to cross-sell our products to existing employer clients, the participation of employees in our employer clients' Consumer-Directed Benefits, our ability to compete effectively with current and future competitors, our ability to provide high quality service in a cost efficient manner and our ability to enhance our product functionality. For a discussion of these and other related risks, please refer to "Risk Factors" and elsewhere in our most recent quarterly report on Form 10-Q, which is available on the SEC's website at www.sec.gov. You should review our SEC filings carefully and with the understanding that our actual future results may be materially different from what we expect. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management's beliefs and assumptions only as of the date made. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
WageWorks (NYS: WAGE) is a leading provider of Consumer-Directed Benefits (CDBs) in the United States. WageWorks administers and operates a broad array of CDBs, including pre-tax spending accounts, such as health and dependent care Flexible Spending Accounts (FSAs), as well as Commuter Benefit Services, including transit and parking programs, Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), and other employee benefits.
WageWorks is headquartered in San Mateo, California, with offices in major locations throughout the United States. For more information, please visit the website at www.wageworks.com.
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