Health-savings account provider HealthEquity (HQY) - Get Report on Thursday announced it will acquire employee benefits administrator WageWorks (WAGE) - Get Report in an all-cash deal valued at just more than $2 billion.

Under terms of the deal, HealthEquity will purchase WageWorks for $51.35 a share, which the companies described as "a 28% premium to the volume weighted average closing price of WageWorks shares before HealthEquity's acquisition proposal became public on April 29."

Shares of WageWorks were down 2.06% at $50.60 in late morning trading on Thursday. HealthEquity shares were up 3.4% at $64.40. 

The deal will create a larger provider of health savings accounts and additional consumer-directed benefits including flexible spending, health reimbursement plans and commuter accounts, HealthEquity said.

Following the close of the transaction, HealthEquity CEO Jon Kessler will serve as president and CEO of the combined company.

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