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HealthEquity (HQY) Enhances Commuter Offering With New Buyout

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HealthEquity, Inc. (HQY - Free Report) recently acquired Luum — a thriving technology platform that helps employers manage commute benefits for its employees. The acquisition is likely to boost HealthEquity’s commuter offering. Notably, the terms of the deal were kept under wraps.

For investor’s note, Luum, which was founded in 2012, provides safe, sustainable and flexible mobility options to employees, thereby helping companies to make their workplaces more dynamic.

The acquisition will bolster HealthEquity’s, renowned for being the nation’s largest independent health savings account (“HSA”) custodian, commuter providing and generate new potential to hybrid-workplace strategies.

Significance of the Acquisition

The acquisition will bolster HealthEquity’s commuter offering by providing a vital toolset that an administration requires to execute flexible return-to-office and hybrid-workplace strategies.

HealthEquity will leverage Luum’s advanced technology platform by pairing it with HR and Payroll systems that will enable it to offer safe, inexpensive commute alternatives and flexible remote-work benefits.

HealthEquity will contribute to corporate sustainability as well with the implementation of hybrid workplace strategy through measurement of substantial effect on climate and other environmental conservation areas.

Industry Prospects

Per a report by Market Research Future, the global smart workplace is anticipated to witness a CAGR of 13% and is expected to reach $47 Billion by 2023. Increasing demand for smart office solutions, emergence of smart cities and growing demand for smart networks for energy efficiency are fueling growth in the market.

Considering market growth, implementation of hybrid-work strategies is an appropriate move by HealthEquity to improve their workforce efficiency, which will foster business growth.

Price Performance

Shares of the company have gained 52% in a year’s time compared with the industry’s growth of 29.7%.

Zacks Rank and Key Picks

Currently, HealthEquity carries a Zacks Rank #3 (Hold).

A few better-ranked stocks from the broader medical space are BIOMERIEUX (BMXMF - Free Report) , Harrow Health, Inc. (HROW - Free Report) and Healthways, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.

BIOMERIEUX has a projected long-term earnings growth rate of 24%.

Harrow Health has a projected long-term earnings growth rate of 90%.

Healthways has an estimated long-term earnings growth rate of 10%.

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