Webster Financial in Waterbury, Conn., has agreed to buy JPMorgan Chase's health savings account business.
A purchase price for the all-cash deal was not announced. The transaction includes approximately $1.3 billion in deposits and $175 million investments.
The $22 billion-asset Webster plans to use approximately 60% of the deposits to "pay down short-term borrowings" and will invest the remaining funds in securities, the company said in a news release Thursday.
"HSAs attract long-duration transaction deposits which provide a stable source of funding for Webster's loan growth," James C. Smith, Webster's chairman and chief executive, said in the release.
The new accounts would be administered by HSA Bank, a subsidiary of Webster that currently manages $2.4 billion in assets for approximately 700,000 health care accounts. HSA Bank is based in Sheboygan, Wis.
Deutsche Bank advised Webster, while Hogan Lovells acted as the company's legal advisor. JPMorgan Chase was advised by JPMorgan Securities, and Wachtell, Lipton, Rosen & Katz was the bank's legal advisor.