Fresno-based HealthComp is part of a $3 billion merger with Virgin Pulse. Google Earth image

A Fresno health benefits administrator is merging with one of the world’s most well-known multinational conglomerates in a deal worth a reported $3 billion.

Rhode Island-based Virgin Pulse, a subsidiary of Richard Branson’s Virgin Group Ltd., on Wednesday officially announced its intent to merge with HealthComp, a Fresno-based, third-party health care benefits administrator.

The news was first reported by the Wall Street Journal.

The merger aims to create a digital health platform-as-a-service organization centered around technology and data. It also aims to improve health outcomes and drop costs for members and employers, according to the release.

Once finalized, the combined entity will serve more than 20 million members and address costs for more than 1,000 self-insured employers, according to the release.

“Self-insured employers pay for almost half of the nation’s healthcare expenditures and now require more innovative and affordable solutions,” said HealthComp CEO Chad Harris. “With concierge-level service, rich analytics, and expert medical cost management, HealthComp ensures that employers can make informed benefits decisions that align with the needs of their employees and businesses.”

The deal is expected to close by the fourth quarter of this year.

“This combination with HealthComp creates a new category in the health space that will change the way employers address the two-fold challenge of reducing costs and improving member outcomes, said Virgin Pulse CEO Chris Michalak. “Our two companies have a shared mission to improve individual outcomes by engaging users early and often, and making health and wellbeing more accessible, affordable, and personal for all.”

New York-based private equity firm New Mountain Capital acquired HealthComp in 2020. At the time it had $28 billion in assets under management.

New Mountain Capital will be the majority owner of the combined entity.

Michalak will serve as CEO once the transaction is finalized.

Founded in 1994, HealthComp serve more than 400,000 members in the self-funded employer industry. Its corporate offices are in Downtown Fresno with additional locations in Illinois and Louisiana.