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Health-E Commerce® Announces Acquisition by H.I.G. Capital

H.I.G. Capital Acquires Health-E Commerce family of brands, including FSA Store®, HSA Store®, and Caring Mill®; majority equity ownership was previously held by BPOC.


DALLAS (June 18, 2024) –  Health-E Commerce (“the Company”), the first and leading family of online stores dedicated to serving millions of Americans enrolled in tax-free healthcare spending accounts, is pleased to announce that the Company and its family of brands has been acquired by an affiliate of H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with $64 billion in capital under management. Health-E Commerce® is the parent brand of FSA Store and HSA Store, the first and leading online stores that exclusively offer products and telehealth services that are eligible with tax-free flexible spending account (FSA) and health savings account (HSA) funds. Prior to the sale, majority ownership in Health-E Commerce was held by BPOC since 2019. 

H.I.G. Capital Acquires Health-E Commerce

“We’re immensely proud of the unique market position that our team at Health-E Commerce has built over the years and of our deep and long-standing relationships with FSA/HSA administrators,” said Health-E Commerce CEO Preston Farrington. “I am confident that the resources and backing of H.I.G. will accelerate our growth and advance our vision for the company, while creating new opportunities for our employees, partners, and the millions of consumers who are enrolled in tax-free healthcare accounts.”


FSA Store and HSA Store offer consumers a simplified, guess-free, healthcare shopping experience with more than 2,500 eligible products, a growing array of telehealth services, an industry-leading eligibility list, and interactive online consumer Learning Centers. Health-E Commerce brings added value to consumers through Caring Mill and Caring Mill by Aura, its private label family of products that makes both everyday healthcare essentials and sought-after wellness products, as well as high-tech devices accessible and affordable for FSA and HSA users. 


Health-E Commerce also raised the bar on innovation for third-party benefits administrators (TPAs) by introducing a suite of e-commerce technology integrations for employer benefits portals that improve participant utilization and engagement through features like secure single sign on, cardless payments, and balance tracking. According to Farrington, TPAs and participants can expect continued technology leadership from Health-E Commerce as a result of the acquisition. 


“Heath-E Commerce transformed the FSA/HSA experience when they launched the first online stores for account holders. Since then, the company has delivered on its promise to simplify the experience and help customers get more benefit from tax-free healthcare accounts, while continually improving the administrative process and outcomes for TPAs,” said John Harroff, Managing Director, H.I.G. “We are excited to partner with the Health-E Commerce team and to help them exceed their aggressive growth goals.”


According to Farrington, there will be no changes to day-to-day operations or to sales or executive leadership at Health-E Commerce as a result of the sale. 

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Health-E Commerce, the first and leading family of online stores dedicated to serving millions of Americans enrolled in tax-free healthcare spending accounts, is pleased to announce that its family of brands has been acquired by an affiliate of H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with $64 billion in capital under management. Health-E Commerce® is the parent brand of FSA Store and HSA Store, the first and leading online stores that exclusively offer products and telehealth services that are eligible with tax-free flexible spending account (FSA) and health savings account (HSA) funds. FSA Store and HSA Store transformed the tax-free spending experience for account holders by delivering a simplified shopping experience and user-friendly education and account tools. Meanwhile, we raised the bar on innovation for third-party benefits administrators (TPAs) by introducing a suite of e-commerce technology integrations for employer benefits portals that improve participant utilization and engagement through features like secure single sign on, cardless payments, and balance tracking. Read more about the acquisition and how Health-E Commerce is poised for growth and innovation in our news release.


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About Health-E Commerce

Founded in 2008, Health-E Commerce is the parent brand to FSA Store and HSA Store, online stores that serve the 70+ million consumers enrolled in pre-tax health and wellness accounts. The company also created Caring Mill™, a popular private-label line of health products through which a portion of every purchase is donated to the Children’s Health Fund. Since 2010, the Health-E Commerce brands have led the direct-to-consumer e-commerce market for exclusively pre-tax health and wellness benefits. Health-E Commerce plays an essential role in expanding product eligibility for important new categories within the list of eligible medical expenses. Headquartered in Dallas, Health-E Commerce has 120 employees.


About H.I.G. Capital

H.I.G. Capital is a leading global alternative investment firm with $64 billion of capital under management. Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, New York, and San Francisco in the United States, as well as international affiliate offices in Hamburg, London, Luxembourg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, São Paulo, and Dubai, H.I.G. specializes in providing both debt and equity capital to middle market companies, utilizing a flexible and operationally focused/value-added approach. Since its founding in 1993, H.I.G. has invested in and managed more than 400 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $53 billion.

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