San Mateo, CA (Monday, December 06, 2010)
Acquisition of Fringe Benefit Management Company's tax favored and benefits continuation division plus a strategic partnership establishes WageWorks as the leading provider of consumer-directed benefits solutions to public sector employers. Fringe Benefits Management Company's core business has rebranded and positioned itself as FBMC Benefits Management, Inc. (FBMC), an industry leader in delivering multi-faceted benefits education, enrollment management, and brokerage of voluntary products and administrative services for both the private and public sector.
WageWorks, Inc. - the nation's largest provider of consumer-directed benefits solutions - is pleased to announce the acquisition of the tax favored and benefits continuation administration business of Fringe Benefits Management Company, based in Tallahassee, FL.
As part of the acquisition, WageWorks will assume responsibility for Fringe Benefit Management Company's existing account-based, employee tax favored and benefits continuation business, which includes the administration of healthcare flex and savings accounts, dependent care accounts, transportation benefits and COBRA, primarily for employers in the public sector. All of the staff, technology and tools currently used by Fringe Benefits Management Company to serve these accounts will also be transferred to WageWorks. The addition of these resources and associated expertise immediately establishes WageWorks as the leader in consumer-directed benefits for public sector employers, an area where the company has not previously focused.
The new WageWorks division will do business as Fringe Benefits Management Company, a Division of WageWorks, and will remain headquartered in Tallahassee, Florida. In turn, Fringe Benefits Management Company's core business has rebranded and positioned itself as FBMC Benefits Management (FBMC) and will remain in the benefits arena, focusing on its core competencies of providing full benefits brokerage and administration, benefits education, enrollment management, and communications services to employers. FBMC Benefits Management (FBMC) is partnering with WageWorks to develop new client relationships for pretax accounts. This partnership will strengthen both companies' core businesses and enable them to extend their reach into new markets and opportunities.
"Fringe Benefits Management Company's history and experience in the benefits industry, and particularly in the public sector, is unparalleled. The addition of its people, technology and knowledge to WageWorks is key to our business strategy of consolidation and growth through strength and innovation," said Joe Jackson, WageWorks, Inc. CEO.
Michael Sheridan, chairman and founder of Fringe Benefits Management Company, said, "This is a strategic partnership in every sense. The combination of these two very strong and complementary companies will create a dominant force in the consumer-directed benefits marketplace. Our historic specialization in the governmental employer market will be complemented by our new efforts to expand in the private sector. This relationship is a win for us, our clients, participants and everyone else involved."
FBMC Benefits Management, Inc. (FBMC), an industry leader for over 34 years, provides comprehensive employee benefits packages. FBMC affords employers customized solutions, including: multi-faceted benefits education, communications, enrollment management, and brokerage of voluntary/ core products and administrative services. It partners with only "best in industry" insurance providers with A- and above ratings. FBMC is at the forefront of educating employers and employees on the latest in benefits with the most innovative form of benefits media, FBMC.TV, On-Demand 24-7. FBMC facilitates an environment in which employers focus on core competencies and "Take Control Back" instead of the complexities of managing their benefits while increasing employee satisfaction, retention, productivity, and return on investment.
WageWorks (NYSE: WAGE) is a leader in administering Consumer-Directed Benefits (CDBs), which empower employees to save money on taxes while also providing corporate tax advantages for employers. WageWorks is solely dedicated to administering CDBs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, COBRA, and other employee benefits. WageWorks makes it easier to understand and take advantage of Consumer-Directed Benefits for 58,000 employers and approximately 4.5 million people. WageWorks is headquartered in San Mateo, California, with offices in major locations throughout the United States. For more information, visit www.wageworks.com.