NEW YORK CITY — Towers Watson, a New York-based consulting firm, announced it has acquired Extend Health, Inc., a South Jordan company which claims to operate the largest private Medicare exchanges in the country, for $435 million, excluding some debts and fees.
"This is an important time for retiree health benefits. Both companies have a strong track record of helping employers develop strategies and create programs for employee and retiree benefits," Bryce Williams, chief executive officer of Extend Health, said in a statement. "Our complementary strengths and strategies will allow us to hit the ground running, offering clients access to a proven, powerful and scalable exchange solution today, and to improve the landscape of employee benefits going forward."
Extend Health will be a part of Towers’ new Exchange solutions segment, joining the three existing segments of Benefits, Talent and Rewards, and Risk and Financial Services.
Williams will lead the segment along with 300 employees.
"We are delighted that Extend Health is joining Towers Watson to provide a new way of delivering benefit packages to leading organizations," John Haley, Towers Watson CEO, said in a statement. "This agreement brings together two forward-thinking organizations with a commitment to providing market-leading solutions to our clients. The combination of Towers Watson benefits expertise and resources, and Extend Health’s proven infrastructure and scalable exchange platform, positions us well to meet the needs of employers and retirees now and in the future."
The South Jordan company provides retirees a selection of private Medicare plans through its exchange and decision support technology.