HealthEquity Inc., the nation’s largest independent health savings account custodian, has entered into a definitive agreement to acquire Further, a provider of HSA and consumer directed benefit administration services, from Stella Health. HealthEquity is purchasing Further for $500 million. With the acquisition of Further and its technology, HealthEquity expects to expand its role in the growing HSA market.

“By putting HealthEquity’s Total Solution inside of network partner applications and private-label brand environments, Further’s technology will align us more closely than ever before and enable new partnerships to introduce more consumers to HSAs,” said president and CEO Jon Kessler.

Further is also a provider of employer-funded voluntary employees’ beneficiary association trust administration. VEBAs are triple-tax advantaged health accounts like HSAs, that cover medical costs while employed or post-retirement. “Adding VEBA capability to HealthEquity’s Total Solution brings a new choice to clients and partners seeking to offer differentiated benefits while controlling healthcare costs,” added Kessler.

Willkie Farr & Gallagher LLP is serving as legal counsel and Perella Weinberg Partners LP is serving as exclusive financial advisor to HealthEquity. Stella has engaged Taft Stettinius & Hollister LLP for legal counsel and Wells Fargo Securities as exclusive financial advisor.