State Bankshares in Fargo, N.D., has agreed to sell its employee-benefits business to WEX.
State, the $5.3 billion-asset parent of Bell Bank, said in a press release Thursday that it will sell Discovery Benefits to WEX, a payment processor, for $425 million in cash. The deal is expected to close in the first quarter.
State will retain a 5% stake in Discovery Benefits, which administers consumer-directed benefits, including health savings accounts and commuter programs. Discovery Benefits has 900 employees.
Michael Solberg, Bell Bank’s president and CEO, said in the release that the bank is not for sale.
“I’m extremely proud of the people at Discovery Benefits and the growth they’ve achieved,” Solberg added. “I’m excited for our continued investment and role with WEX moving forward. The best part of this transaction is that we remain a part of building something special in our region.”
