Lightyear Capital, a New York-based buyout house that invests in the financial services space, has agreed to buy the healthcare benefit services arm of payment processor Fidelity National Information Services for $335m.
The new business, which will be called “Benefit Solutions”, is a financial technology company providing benefits administration software as a service, multi-purse debit cards and transaction processing services for consumer directed healthcare (CDH) accounts.
These enable employees to save money to pay for their rising out-of-pocket healthcare expenses.
The company has the number one market share in both healthcare benefit administration and debit card processing technology and is the only integrated technology provider in the CDH sector.
“Lightyear has been investing in payments and transaction processing businesses for many years and has focused on companies with strong recurring revenues and solid growth opportunities,” Lightyear chairman Donald Marron said in a statement.
“Benefit Solutions’ market leading position in CDH account administration and payment services fits this profile well.”
Benefit Solutions will continue to serve over 500 clients including TPAs and health insurance plans with technology that administers and processes around 11 million CDH accounts for their plan members and employee groups.
Benefit Solutions will also continue to provide electronic and paper claim payment services and health plan ID card solutions for health insurers. The company will be headquartered in Waltham, MA, with operations in Carrollton, TX and Milwaukee, WI.
Copyright © 2012 AltAssets
You must be logged in to post a comment.