Metavante (Milwaukee) will acquire Waltham, Mass.-based Med-i-Bank, Inc. (MBI), a provider of electronic payment services for employee benefit and consumer-directed health care accounts. Metavante will pay $145 million, including approximately $138 million in stock of its parent company, M&I Corp.
The MBI purchase bolsters Metavante's ability to provide services in the growing field of Health Savings Accounts, or HSAs. The company offers trust account management services for financial institutions, as well as Internet-based account access and online investment management for HSA consumers.
Forrester Research estimates that the number of HSAs will grow from roughly 391,000 accounts (representing plan assets of $282 million) in 2005 to more than 6.3 million accounts (plan assets of $6 billion) in 2008.