A Webster Bank branch in downtown Boston. Photo by James Sanna | Banker & Tradesman Staff
The parent company of Webster Bank has agreed to acquire Boston-based Bend Financial Inc., a technology company that offers a cloud-based platform for health savings accounts.
HSA Bank, a division of Webster Bank, is among the largest HSA providers in the United States. Webster said in a statement today that Bend’s user experience would be expanded over time to HSA Bank’s customers.
“This acquisition demonstrates Webster’s commitment to enhance HSA Bank’s client experience through strategic technology investments,” John R. Ciulla, Webster’s president and CEO, said in the statement.
HSAs are available to individuals with high deductible health plans. Research by HSA investment solutions provider Devenir last year found that the U.S. had almost $93 billion in HSA accounts and 31 million accounts through June 30, 2021. Devenir estimates that the U.S. will have $113 billion in HSAs by the end of 2022.
Webster’s HSA Bank division on Dec. 31 had $11.1 billion in total footings, including $7.4 billion in deposit accounts and $3.7 billion in assets under administration through linked investments, according to the statement.
“Bend complements HSA Bank’s ability to drive even better outcomes and value for the millions of consumers we serve,” Chad Wilkins, president of HSA Bank, said in the statement. “This accelerates efforts underway to deliver enhanced user experiences.”
Terms of the transaction were not disclosed. Webster said it expects to complete the transaction this quarter.
Under the agreement, Bend will continue to operate and serve its clients as it does today, the statement said. Bend works with individuals as well as partners, including financial institutions, health plans and employers.
Bend’s client-facing experience uses cloud-native technology and user-centered design to offer a simplified and modern approach to HSA management and engagement, the statement said.
“Our goal is to simplify healthcare saving and make it easy for everyone to manage their long-term financial wellness,” Tom Torre, Bend’s president and CEO, said in the statement. “We’re excited that this transaction allows us to expand on that mission.”
Wachtell, Lipton, Rosen & Katz is serving as legal adviser to Webster.
The deal comes after Webster and New York-based Sterling Bancorp completed a merger on Feb. 1 valued at approximately $10.3 billion.
