Hartford health insurer Aetna continues to be in acquisition mode, announcing Monday plans to purchase for $202 million a company that provides independent account-based health plan administrator services.
The deal for Omaha, Neb.-based PayFlex Holdings would be financed by Aetna’s available resources, and will require antitrust regulatory approval, the company said.
The transaction is expected to close in the second half of 2011 and be neutral to Aetna’s financial results in 2011 and 2012, the company said.
PayFlex provides proprietary web-based benefit administration services for customers with consumer-based products, like health savings accounts, health reimbursement accounts and flexible spending accounts.
Enrollment in consumer-directed health plans has steadily grown in recent years as employers have looked to shift more of the costs of health care on employees.
“This acquisition fits well with Aetna’s core business, which has a strong focus on consumer-directed product offerings,” said Mark T. 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 also has offices in Shelton, Chicago, Denver, and Bethesda and Hagerstown, Md. The company employs approximately 423.
PayFlex’s management team and employee base will remain with the company going forward. Aetna expects to combine PayFlex and its existing CFS business into a single unit with approximately 2 million accounts.
The combination of these 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 has been in acquisition mode this year trying to diversify and bolster its core businesses. The company recently completed a $600 million purchase of Prodigy Health Group, which administers self-funded health plans for small- to mid-size companies.
Aetna also bought the Medicare supplement business of Genworth Financial Inc. and paid $500 million for Utah health information technology firm Medicity.
