08 Mar HealthEquity Expands Commuter Offering with Luum
Acquisition adds options beyond monthly transit passes, strengthening capabilities for the new hybrid workplace
DRAPER, Utah, March 08, 2021 (GLOBE NEWSWIRE) — HealthEquity, Inc. (NASDAQ: HQY) (“HealthEquity”), the nation’s largest independent health savings account (“HSA”) custodian, today jointly announced the acquisition of Luum, a fast-growing technology platform for employee commute management, compliance and sustainability.
This acquisition strengthens the HealthEquity commuter offering, delivering a critical toolset HR and facilities professionals need to implement flexible return-to-office and hybrid-workplace strategies. Combining technology and deep integrations with parking providers and IT integrations into HR and Payroll systems, employers can now offer safe, affordable commute alternatives and flexible remote-work benefits.
“Luum’s enterprise commute platform and connected ecosystem of third-party mobility solutions enable employers to design benefits for every commute, or no commute at all,” said Sohier Hall, CEO of Luum. “Adding Luum’s powerful platform to HealthEquity’s existing commuter offering and reach, we expect to help our clients offer their workforce the most flexible, useful, and sustainable way to get to and from work. The timing of this acquisition could not be more perfect as employers across the country gear up for a new commuting and work access environment. They require the unified system that puts their benefit policies into practice. In support of employee experience to real estate asset optimization to workforce equity to corporate sustainability, the Luum and HealthEquity combination is that solution.”
Among the highlights, HealthEquity and Luum will deliver:
- Safe commute options like closed-network carpool matching, staggered arrival, guaranteed ride home, and proactive communication. Safety and transparency are a priority for employers as 64% of workers are uncomfortable returning to the office, with entry-level and older workers feeling least safe1;
- Ultimate policy flexibility for managing and measuring hybrid commute policies. According to Gartner, 82% of employers expect a post-pandemic hybrid workplace2. Now organizations can easily implement work-from-home cost reimbursements, sustainable commute incentives, daily parking reservations, flexible subsidies, and private bus/shuttle demand.
- Employee commute portal for accurate workplace commute and remote work information, customized to employer objectives and connected to HRIS, benefits, payroll and expense management systems.
- Corporate sustainability as a part of the hybrid workplace strategy, through measurement and visibility of tangible outcomes on climate and other environmental conservation areas. By some estimates, the commute accounts for 98% of the typical employee’s carbon footprint.3
- Transportation equity is inextricably linked to housing and transportation affordability. When combined, 50% of household costs are spent on housing and transportation in the US4. The combined solution gives employers an opportunity to create commute policies and subsidies to help address transportation affordability and equitable access.
Perella Weinberg Partners LP served as financial advisor and Willkie Farr & Gallagher LLP served as legal counsel to HealthEquity on this transaction.
HealthEquity and its subsidiaries administers Health Savings Accounts (HSAs) and other consumer-directed benefits for our more than 12 million accounts in partnership with employers, benefits advisors, and health and retirement plan providers who share our mission to connect health and wealth and value our culture of remarkable “Purple” service. For more information, visit www.healthequity.com.
Luum is on a mission to empower enterprises to match employees’ dynamic work-life with safe, flexible and sustainable mobility options. As a leader in enterprise commute management, we engage employees, unify mobility options, and bring about meaningful behavior change. Additionally, we provide safe, trusted and flexible commute options for frontline workers and those preparing for a return to the workplace. For more information, visit www.luum.com.
1 Pew, Conference Board: https://www.shrm.org/hr-today/news/hr-news/pages/remote-workers-not-comfortable-returning-to-office.aspx
2 Gartner: https://www.nytimes.com/2021/02/22/business/energy-environment/corporations-climate-change.html
3 Sun-Microsystems: https://www.businesswire.com/news/home/20080609005431/en/Sun-Microsystems-Study-Finds-Open-Work-Program
4 U.S. Department of Transportation: https://www.transportation.gov/mission/health/housing-and-transportation-affordability#transportationandhealthconnection