Towers Watson, a global professional services company, announced today that it has acquired Acclaris, a provider of software-as-a-service (SaaS)-based technology and services for consumer-driven health care and reimbursement accounts, including health savings accounts (HSAs), health reimbursement arrangements (HRAs) and other consumer-directed accounts. The acquisition enhances Towers Watson's position as a leading benefits administration and exchange provider.Account-based health plans (ABHPs) pair a health insurance plan with a tax-advantaged spending or reimbursement account such as an HSA or an HRA. Towers Watson research shows that adoption of these kinds of plans is growing rapidly. That research shows that approximately 50% of employers could offer ABHPs as their only option by 2017 - up from about 20% already doing so in 2015.
Founded in 2001, Acclaris offers flexible products that include integrated technology and services to support account-based benefits on a single platform in a scalable way. Acclaris supports 1.4 million accounts (as of March 2015) across all account-based benefit types: HRA, HSA, flexible spending accounts, commuter accounts and custom reimbursement accounts, with both technology and a global service model.
"Going forward, Towers Watson and Acclaris will enable clients of any size to offer benefits in new and cost-effective ways," said Jim Foreman, managing director for Towers Watson's Exchange Solutions segment. "Acclaris stands out from the competition for its operational efficiency, and its scalable and configurable SaaS-based technology and service delivery. We believe this combination will allow us to offer the end-to-end process for both traditional benefits administration and private benefits exchange solutions, and to deliver a seamless experience for our employer-clients, an exceptional experience for consumers and high-quality customer support for both."
Acclaris is headquartered in Tampa, FL, with locations in Kansas and India. Since 2001, its team of over 600 people has worked with a number of employers, health plans, banks and third-party administrators as the technology and services backbone for their account-based benefit offerings. Acclaris administers 1.4 million health care accounts, working with 6,000 employers, including more than 40 Fortune 500 companies.
Acclaris' CEO, Dean Mason, will join the leadership team of Towers Watson's Exchange Solutions segment. Jim Foreman will continue to lead the overall segment.
"We're in an era of convergence as banking and technology combine to enable advanced account-based benefit services," said Mason. "We look forward to adding our vision and expertise in account administration to Towers Watson's market-leading benefits administration and exchange-based solutions, and to helping its clients manage costs and encourage health care consumerism. Acclaris' solution will add a new level of integration and ease of use to the Towers Watson benefits administration and private exchange offerings."
The purchase price is $140 million, with the acquisition anticipated to have no impact on Towers Watson's investor guidance in fiscal year 2015. Acclaris' calendar year 2015 revenues are expected to be approximately $35 million. Additional information about the acquisition is available on the investor relations page at towerswatson.com.
Cadwalader, Wickersham & Taft LLP acted as legal advisor to Towers Watson. Cooley LLP acted as legal advisor to Acclaris.