Filing Flows › Healthequity (HQY) › Takeover & LBO
Is Healthequity (HQY) a takeover target?
A leveraged buyout at today's price plus 30% ($133.21 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $76.21 a share (−26% against today's $102.47). Historically 2.9% of companies with its figures were bought within a year (0.58× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $133.21 | today's $102.47 plus 30% |
| × shares | 84.0 million | |
| = Equity value | $11.2B | |
| + Debt refinanced | $931M | |
| − Cash | $256M | |
| = Enterprise value | $11.9B | 23.3× EBITDA of $509M |
| Fees | $237M | 2% of the price |
| New debt | $2.8B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $9.3B | 77% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.5B | $546M | $214M | $281M | $2.5B |
| Year 2 | $1.6B | $581M | $193M | $327M | $2.2B |
| Year 3 | $1.6B | $611M | $168M | $373M | $1.8B |
| Year 4 | $1.7B | $636M | $139M | $417M | $1.4B |
| Year 5 | $1.8B | $655M | $107M | $459M | $943M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 18.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $11.9B | |
| − Debt left | $943M | |
| = Buyer's equity | $11.0B | |
| Money multiple | 1.18× | on $9.3B put in |
| Buyer's yearly return (IRR) | 3.4% |
Price against return
What the buyer makes at other premiums over today's $102.47; the IRR reaches 20% at $76.21 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $112.72 | 7.8% |
| 20% | $122.96 | 5.5% |
| 30% | $133.21 | 3.4% |
| 40% | $143.46 | 1.6% |
| 50% | $153.70 | −0.1% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.4B | |
| EBITDA, last 12 months | $509M | 37.4% of revenue |
| Depreciation and amortization | $158M | |
| Capital spending | $2.5M | |
| Debt | $931M | |
| Cash | $256M | |
| Share price | $102.47 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 7.3% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 23% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Healthequity would cost about $143.46 a share, $12.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $117.53 | $9.9B |
| Median | 40% | $143.46 | $12.1B |
| High end (a quarter paid more) | 60.2% | $164.16 | $13.8B |
The odds, from history
Historically 2.9% of companies with its figures were bought within a year (0.58× the average). Its figures put it in decile 2 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Healthequity's latest quarter
Healthequity, Q2 FY27: revenue $351M (+8% year over year), operating margin 28.1%, net earnings $65.6M, operating cash flow $136M. The chart follows the revenue to costs, profit and cash.
Questions
Is Healthequity being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Healthequity?
A leveraged buyout at today's price plus 30% ($133.21 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $76.21 a share (−26% against today's $102.47).
What would a takeover of Healthequity cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Healthequity would cost about $143.46 a share, $12.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.