HealthSmart Holdings has agreed to acquire Wells Fargo Third Party Administrators, the medical third-party administration (TPA) business of Wells Fargo Insurance Services USA.
Wells Fargo TPA offers employee benefits and claims administration services for employers, where 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, West Virginia, Juneau, Alaska, Fayetteville, North Carolina and Newnan, Georgia and nearly 600 Wells Fargo TPA employees will join HealthSmart.
Following the acquisition, HealthSmart will have annual revenues of more than $100m, employ more than 1,000 workers, and manage more than $5bn in claims.
HealthSmart chairman Daniel Crowley said the combination of Wells Fargo TPA and HealthSmart creates a non-carrier owned TPA in the country. Establishing a beachhead in the Eastern US to complement our current Texas, Colorado, Ohio, and California locations will build a service and distribution capability not currently available through most non-carrier managed care companies.
Terms of the transaction, which is expected to be completed by the end of 2011, were not disclosed.