Press Release

Health-E Commerce Receives Majority Equity Investment from Beecken Petty O'Keefe & Company (BPOC)

Issued by Health-E Commerce

Feb. 15, 2019

New York February 15, 2019. Health-E Commerce, the parent company of the nation's leading family of e-commerce brands dedicated to pre-tax health and wellness products and services, today announced that it has received a majority equity investment from Beecken Petty O'Keefe & Company ("BPOC"), a leading Chicago-based private-equity firm focused exclusively on the healthcare industry. The transaction is effective immediately and financial terms were not disclosed.

Based in New York, Health-E Commerce is the parent company of pre-tax health and wellness shopping sites, FSAstore.com and HSAstore.com, the newly-launched site, WellDeserved, a hub for redeeming corporate wellness rewards, and Caring Mill -- the Company's private label line of health products that provides a donation with purchase to Children's Health Fund. Health-E Commerce CEO and founder Jeremy Miller will continue as the Company's CEO and remains a meaningful shareholder in the business.

"At Health-E Commerce, we focus on a powerful and growing market segment of more than 60 million consumers with nearly $100 billion in spending power. Our rapid growth over the past decade illustrates the increasingly important role pre-tax health and benefits play in the lives of millions of Americans," said Miller. "Alongside BPOC, we will launch a whole new chapter of growth and help millions more Americans take advantage of products and services that support their health and maximize their benefits through our shopping sites, educational content and consumer advocacy."

"As more Americans use their workplace benefits to craft personalized solutions for managing their health in an era of ever-rising costs, Health-E Commerce's brands have emerged as a trusted solution for millions of consumers shopping with FSA or HSA dollars, or redeeming rewards from their corporate wellness programs," said Grant Patrick, Partner at BPOC. "We believe the Company is well positioned to respond to growing consumer demand for more innovative health benefits and to capitalize on the rapid expansion of the health and wellness benefits space."

For nearly a decade, Health-E Commerce's family of brands have devised solutions for the biggest consumer-facing problems related to spending pre-tax health benefits through better consumer education and guaranteed eligible and authentic health products. Health-E Commerce has built the only partner network of more than 250 third-party administrators (TPAs) and more than 300 direct relationships with health and wellness brands to serve over 60 million Americans who currently utilize tax-advantaged accounts like Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs) and corporate wellness programs.

Financo acted as financial advisors in the transaction and O'Melveney & Myers LLP acted as legal advisor to Health-E Commerce. Paul Hastings LLP served as legal advisor to Beecken Petty O'Keefe & Company.

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