[December 16, 2004] WageWorks Acquires FlexBen Corporation; Combination Extends WageWorks' Leadership in Health Care Spending Accounts Tweet SAN MATEO, Calif. --(Business Wire)-- Dec. 16, 2004 -- WageWorks(R), the leading provider of consumer-driven tax-advantaged spending accounts announced today it has acquired all of the outstanding shares of FlexBen Corporation, a national employee benefits administration firm. As a result, WageWorks extends its leadership position in health spending accounts adding to its position as the largest provider of transportation spending accounts nationwide. "Joining forces with FlexBen represents a logical next step in our overall growth strategy," said Scott Halstead, WageWorks' chief executive officer. "Like WageWorks, FlexBen is focused on the business of providing employers, employees and retirees tax-advantaged spending accounts, and we both service a similar client base of leading companies that demand superior service and solutions." Under the agreement, WageWorks has acquired the ongoing business of FlexBen Corporation bringing the combined client base to more than 1,000 companies, including 75 of the Fortune 500 as well as a number of the nation's leading health plans. The combined company serves a base of more than 7 million eligible employees at such leading employers as Pitney Bowes, ABN AMRO and Nordstrom. "The business of administering health care spending accounts will grow 50 percent annually over the next five years, driven by recent legislation and rising health care costs," said Halstead. "Employers increasingly demand an independent and focused service provider who can deliver on the promise of consumer-directed health spending accounts. This combination solidifies WageWorks' position as that focused leader that can provide the world-class solutions and services employees and employers deserve." WageWorks' delivery platform brings together traditional benefits administration and banking services such as the WageWorks health care card and online bill payment. WageWorks is the only company to offer such a complete spending account solution under one roof. "WageWorks and FlexBen have forged a recognized reputation of industry leadership and a tradition of superior customer service that ensures our clients will continue to enjoy excellent service and new solution opportunities," said David Wilson, FlexBen founder. "The combination creates a state-of-the-art delivery platform that will provide customers with many added benefits including the convenience of a fast and simple purchase, claims and reimbursement process with outstanding levels of customer service." WageWorks is absorbing the FlexBen business, which will continue its operations in Troy, Michigan and Lombard, Illinois. David Wilson will continue to serve as president of Wilson Partners and will be an external consultant to WageWorks. About WageWorks WageWorks, Inc. is the leading provider of consumer-driven tax-advantaged spending accounts for health and dependent care, and commuter. Products include flexible spending (FSA), health reimbursement (HRA), health savings (HSA), COBRA and commuter accounts. WageWorks is the only company to deliver a complete spending account solution under one roof. It offers products on a single platform with built-in debit cards for health care and convenient account management tools such as electronic-bill payment, cash reimbursement and transit-pass home-delivery services. This reduces the cost of plan administration, while maximizing plan participation and value for employees. WageWorks is headquartered in San Mateo, California, with offices in New York, Washington D.C., Chicago, Dallas and Detroit. For more information, please visit the web site at www.wageworks.com, email WageWorks at [email protected], or call 866-602-3887. [ Back To TMCnet.com's Homepage ]