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HealthSmart Holdings Inc., based in Dallas, Texas, has entered into a definitive agreement to acquire Wells Fargo Third Party Administrators Inc., the medical third party administration (TPA) business of Wells Fargo Insurance Services USA Inc. – part of Wells Fargo & Co.

Wells Fargo TPA offers employee benefits and claims administration services for employers. HealthSmart will acquire all of the operating assets and related liabilities of the TPA. As part of the transaction, HealthSmart will assume the leases for office locations in Charleston, W.Va.; Juneau, Alaska; Fayetteville, N.C.; and Newnan, Ga.; and nearly 600 Wells Fargo TPA employees will join HealthSmart.

Following the acquisition, HealthSmart will have annual revenues of more than $100 million, employ more than 1,000 workers, and manage more than $5 billion in claims.

The acquisition expands HealthSmart’s footprint beyond Texas, Colorado, Ohio and California to the East coast, the company’s announcement said.

Source: HealthSmart

Topics Mergers & Acquisitions Texas