WageWorks Buys CONEXIS - Quick Facts

(RTTNews) - WageWorks, Inc. (WAGE), a provider of Consumer-Directed Benefits such as pre-tax accounts for health, commuter and other employee benefits, has acquired CONEXIS, one of The Word & Brown Companies, in an all cash deal. This further strengthens WageWorks' position in the Consumer-Directed Benefits market.

CONEXIS serves the needs of more than 16,000 organizations of all sizes by providing account-based plans, COBRA and Direct Bill administration services, and public and private exchange services to corporations, state and local governments, and business process outsourcing companies, as well as insurance carriers and health plans.

CONEXIS would continue to service its clients and their employees out of their Irving, Texas, and Orange, California, offices, supported by additional capabilities, products and technologies provided by WageWorks. The company would now operate as "CONEXIS, an unit of WageWorks, Inc.

The deal was financed using both cash on the balance sheet, as well as the drawdown from the company's existing line of credit. For the rest of 2014, WageWorks currently expects CONEXIS to contribute $23.0 million to $25.0 million in revenue and to be slightly accretive to Adjusted EBITDA and to have a meaningfully positive impact to Adjusted EBITDA in 2015. Further, for the remainder of 2014, WageWorks expects the acquisition to be neutral to marginally accretive to GAAP income per share inclusive of transaction and acquisition amortization costs.