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WageWorks Acquires Crosby Benefit Systems to Further Its Leadership in Consumer-Directed Benefits

SAN MATEO, Calif. — (BUSINESS WIRE) (Tuesday, May 07, 2013)

WageWorks, Inc. (NYSE: WAGE), a leading provider of Consumer-Directed Benefits (CDBs), such as pretax accounts for health, commuter and other employee benefits, today announced its acquisition of Crosby Benefit Systems, Inc., an administrator of benefit programs with a focus on higher education and health care institutions, based in Newton, Massachusetts. This transaction further strengthens WageWorks' leadership position in the Consumer-Directed Benefits market.

 

Crosby Benefit Systems serves the needs of hundreds of small businesses to large corporations by providing their employees with a range of Consumer-Directed Benefits, including Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), COBRA benefits continuation, Direct Bill benefit enrollment and eligibility management, as well as commuter and tuition benefits.

 

"We are very pleased to welcome Crosby Benefit Systems to the WageWorks family and believe they fit in well with our stated portfolio purchase strategy," said Joe Jackson, CEO of WageWorks. "Their experienced team has developed a reputation for service excellence which has earned them strong relationships with clients across a broad range of industries, and proven success in cross selling products across their portfolio. We are confident that by adding WageWorks’ offerings and resources, we will expand our opportunities as a joint company."

 

“We are thrilled to have the opportunity to continue our high quality and local service with more powerful technology and an expanded portfolio of products,” said Harvey Crosby, founder and President of Crosby Benefit Systems. Crosby Benefit Systems will continue to operate out of their Newton offices as “Crosby Benefit Systems, a division of WageWorks.”

 

More information on the acquisition and its expected financial impact will be provided during the Company's scheduled first quarter ended March 31, 2013, financial results conference call on May 9, 2013 at 5:00 p.m. ET.

 

The live webcast of this conference call can be accessed under the “Investor Relations” section of the Company’s website at www.wageworks.com. Those wishing to participate in the live call should dial 866-515-2914 (toll-free) or 617-399-5128, and enter pass code 91583853. Following the call, an archived webcast will be available in the “Investor Relations” section of the Company’s website at www.wageworks.com. A replay will be available at 888-286-8010 (toll-free) or 617-801-6888 using the pass code 74802897.

 

Forward-Looking Statements

 

Statements in the press release regarding WageWorks’ acquisition of Crosby Benefit Systems, Inc., which are not historical facts, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terms, such as believe, expect, may, will, provide, could and should and the negative of these terms or other similar expressions. These statements, including statements relating to continuing to provide value to their and our employer clients through Consumer-Directed Benefits solutions, the expected benefits of this acquisition and the potential impact on our future operating results are based on current expectations and assumptions that are subject to risks and uncertainties. Our actual results could differ materially from those we anticipate as a result of various factors, including the continued availability of tax-advantaged Consumer-Directed Benefits to employers and employees, our ability to successfully integrate this acquisition, our ability to acquire and retain new employer clients and to cross-sell our products to existing employer clients, the participation of employees in our employer clients’ Consumer-Directed Benefits programs, our ability to compete effectively with current and future competitors, our ability to provide high quality service in a cost efficient manner and our ability to enhance our product functionality. For a discussion of these and other related risks, please refer to “Risk Factors” and elsewhere in our most recent annual report on Form 10-K, which is available on the SEC’s website at www.sec.gov. You should review our SEC filings carefully and with the understanding that our actual future results may be materially different from what we expect. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date made. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

About WageWorks

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.

For more information, contact:

Cathy Corwin

Office: 1-781-966-4152

media@wageworks.com