11 May Metavante buying health-care payments firm
Milwaukee — Metavante Corp. said on Tuesday it is going to buy electronic payment firm Med-i-Bank for $145 million.
Med-i-Bank, or MIB, will continue to operate in Waltham, Massachusetts as a Metavante subsidiary. The firm offers payment services for employee or consumer health savings accounts, as well as other flexible spending accounts. The health-care connection attracted Metavante, the financial technology subsidiary of Marshall & Isley Corp..
Health savings accounts are tax-favored individual accounts, which employees and employers can contribute to, meant to pay for medical expenses under a high-deductible insurance plan.
MBI expects to earn net income of $6 million to $8 million next year. Marshall & Isley expects the acquisition to lower earnings by less than 1 percent in 2005 and 2006, and to start adding to them in 2007.