Webster to buy cloud-based HSA platform

Webster Financial Corporation announced on Wednesday that it had signed a definitive agreement to acquire Bend Financial, Inc., a cloud-based platform solution provider for health savings accounts (HSA).

The bank was drawn by Bend’s platform, which offers “user-centered design to offer a simplified and modern approach to HSA management and engagement,” according to a company statement. 

Under the deal, Bend will continue to operate and serve its clients as it gradually expands service to customers in Webster’s HSA Bank division. HSA Bank had $7.4 billion in deposit balances and $3.7 billion in assets under administration through linked investment accounts as of Dec. 31.

The deal is slated to close in the first quarter of this year; terms were not disclosed.

ADVERTISEMENT

Webster President and CEO John R. Ciulla said, “This acquisition demonstrates Webster’s commitment to enhance HSA Bank’s client experience through strategic technology investments.” 

Wachtell, Lipton, Rosen & Katz is serving as Webster’s legal advisor in the transaction.

Webster Financial Corporation is the holding company for Webster Bank, National Association and HSA Bank. 

Webster completed its $10.3 billion merger with New York’s Sterling Bancorp on Feb. 1, in a deal that retained the bank’s name but moved its headquarters to Stamford from its historic home in Waterbury.