Shares of WageWorks rose 15.1% on Tuesday to $49.57.
"The WageWorks Board of Directors, in consultation with its financial and legal advisors, will continue to carefully review the proposal in order to pursue the course of action that is in the best interests of all WageWorks shareholders," said a statement from Wageworks.
Details of the offer weren't made public, and it isn't clear yet whether a deal will get inked in the near future.
Shares of WageWorks jumped nearly 25% in after-hours trading on Monday, while HealthEquity retreated 4% when reports of a deal first surfaced late Monday.
HealthEquity has a market cap of $4.6 billion, or almost three times that of WageWorks $1.7 billion.