In a move meant to accelerate the convergence of retirement, health, and benefits-related savings options, Millennium Trust Company, LLC, announced today it has completed the previously announced acquisition PayFlex Holdings, Inc.
Oak Brook, Ill.-based Millennium Trust, a provider of retirement, workplace, and custody services for employers, institutions, advisors, and individuals, originally announced the agreement on April 5 to buy PayFlex, a provider of Health Savings Accounts (HSAs) and other consumer-directed benefits solutions, from CVS Health.
In a statement, Millennium Trust said that PayFlex’s complementary offerings strengthen its retirement industry leadership and position the company as a front-runner in consumer-directed benefits and financial wellness.
“The acquisition of PayFlex greatly expands the breadth of services and solutions available for our combined clients, including employers, institutions, and individuals,” said Gary Anetsberger, CEO of Millennium Trust. “By adding Health Savings Accounts and other benefits solutions, we can now offer access to a broader continuum of retirement and financial wellness solutions.”
As a result of the deal, Millennium Trust’s platform has grown to include HSAs, health reimbursement accounts (HRAs), flexible spending accounts (FSAs), COBRA administration, and direct-billing services. With PayFlex’s 2.4 million members and more than 2,500 clients, Millennium Trust will grow to approximately 5 million individual client accounts and $47 billion of total assets under administration.
As part of the transaction, Millennium Trust, through PayFlex, has entered into a long-term commercial agreement with Aetna, a CVS Health company, pursuant to which PayFlex will remain, under Millennium Trust’s ownership, Aetna’s preferred partner for offering and delivering certain HSAs, Flexible Spending Accounts (FSAs), and other consumer-directed benefits to Aetna’s healthcare plan clients.
“We are thrilled to join Millennium Trust, which is in a great position to invest significantly in PayFlex and its technology to make it even easier for people to plan, save, and pay for their health-related expenses,” said Michael DiSimone, CEO and President of PayFlex. “Our suite of consumer-directed benefits is critical to providing tax-advantaged healthcare savings and payments not only today, but throughout retirement.”
The acquisition increases Millennium Trust’s reach to over 60,000 employer plan sponsors and approximately five million individuals, representing $47 billion in total assets under administration.
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