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PE-backed Millennium Trust to buy PayFlex

Millennium Trust has agreed to acquire PayFlex, a provider of health savings accounts and consumer-directed benefit administration services, from CVS Health.

Millennium Trust has agreed to acquire PayFlex, a provider of health savings accounts and consumer-directed benefit administration services, from CVS Health. No financial terms were disclosed. Millennium Trust is backed by Parthenon Capital Partners and ABRY Partners.

PRESS RELEASE

OAK BROOK, Ill., April 05, 2022–(BUSINESS WIRE)–Millennium Trust Company, LLC (“Millennium Trust”), a leading provider of retirement and financial services for employers, institutions, advisors, and individuals, today announced it has signed a definitive agreement to acquire PayFlex Holdings, Inc. (“PayFlex”), a provider of health savings accounts (HSAs) and consumer-directed benefit administration services, from CVS Health Corporation (“CVS Health”).

The addition of PayFlex will significantly expand Millennium Trust’s growing platform to include HSAs, health reimbursement accounts (HRAs), flexible spending accounts (FSAs), COBRA administration, and direct-billing services. With PayFlex’s 2.4 million members and more than 2,500 clients, Millennium Trust will grow to approximately 5 million individual client accounts and $47 billion of total assets under administration.

“This acquisition extends Millennium Trust’s core business and complements our strong retirement solutions,” said Gary Anetsberger, Chief Executive Officer of Millennium Trust, “enabling us to offer a uniquely differentiated platform to our shared partners and clients that spans retirement, consumer-directed benefits, financial wellness, and institutional investment services.”

In connection with the acquisition, Millennium Trust will enter into a long-term commercial relationship with affiliates of Aetna Inc. (“Aetna”), a CVS Health company. Under the agreement, PayFlex will remain Aetna’s preferred provider of HSAs and certain other consumer-directed benefit solutions for Aetna’s existing and prospective healthcare plan client base.

“Given our common commitment to a purpose-driven culture, driving innovation, and advancing operational excellence, we believe Millennium Trust is the right partner to accelerate PayFlex’s industry-leading solutions,” said Michael DiSimone, Chief Executive Officer of PayFlex. “A long-term relationship with Aetna will allow PayFlex to continue to provide seamless, integrated solutions to our mutual clients.”

Upon closing of the transaction, Millennium Trust intends to make strategic investments in the PayFlex business, notably in the areas of sales, service, product, and technology, as the combined company seeks to deepen client relationships and accelerate growth, across its various business lines.

“With the addition of the PayFlex team and the capabilities they bring in health and flexible savings products, we will become a one-stop shop, offering a comprehensive set of services to our client partners and the individuals who rely on us for financial wellness solutions,” said Erik Beck, Chief Growth Officer of Millennium Trust. “As a result, Millennium Trust will be better positioned to support the strategic relationships our clients seek for addressing a wider spectrum of wellness needs, from the beginning of a saver’s career throughout their retirement. We’re very excited about what we’ll be able to accomplish together.”

Financial terms of the transaction have not been disclosed. The acquisition is expected to close in the second quarter, subject to the satisfaction of customary closing conditions and regulatory approvals. Until closing, the two companies will continue their usual business operations as independent entities. Kirkland & Ellis LLP is serving as legal counsel to Millennium Trust. CVS Health has engaged Fried, Frank, Harris, Shriver & Jacobson LLP and Dechert LLP as legal counsel and Wells Fargo Securities, LLC as exclusive financial advisor.

About Millennium Trust
Millennium Trust is a leading provider of retirement and financial services with more than 2.6 million individual and institutional clients holding more than $43 billion in assets. We are committed to the evolving needs of individuals, employers, advisors, and institutional partners, and to empowering clients with trusted expertise, exceptional service, and access to a wide range of solutions. Whether clients are managing retirement assets, running a business, or seeking choices beyond traditional asset options, Millennium Trust provides flexible digital solutions to support our clients’ success. Learn more at www.mtrustcompany.com.